menu

Saving (Macro)


A Nation of Money Hoarders (11/9/2001)

When the general price level keeps falling in a depressed economy with high unemployment, firms and consumers might not invest or consume more no matter how low the interest rate is. Instead, they would rather hold on to the money they already have or convert other assets into money.

Keywords: depreciation, downward spiral, interest rate, liquidity trap, savings, Yen

Bubble Saving (6/17/2010)

The US has been spending more than it earns and has to borrow from abroad to fund its real investment.

Keywords: capital depreciation allowances, debt, disposable income, dissaving, foreign capital, investment, net worth, Saving, trade surplus

Can Social Security Be Saved? (6/29/1999)

Social Security cannot be saved because ballooning Baby Boomer retirees will inevitably increase the financial burden on future workers

Keywords: baby boom, capital gains, demography, equity market, flow, privatizing, retirees, saving, Social Security, stock, trust fund

Is Japan Saving Too Much? (6/29/1999)

Japan's economy is stuck in a prolonged stagnation because consumers' disposable income is too low and business saving is too high.

Keywords: aggregate demand, bank loan, budget deficit, business saving, cartelization, cartels, disposable income, GDP, investment, Japan, liquidity trap, public debt, saving, Stagnation, trade surplus

Savers, Suckers? (5/12/2010)

Savers are collateral damage in the Fed’s attempt to resuscitate a comatose economy during the Great Recession.

Keywords: bailout, borrowers, CD, certificates of deposit, FDIC, Fed funds rates, housing bubble, interest rate, money market funds, mortgage, quantitative easing, recession, savers, Saving, spenders, the Fed, Treasury bonds, yield

When a Vice Becomes a Virtue - Is The U.S. Saving Too Little? (6/29/1999)

Low saving rate in the US has kept the weak global economy afloat by putting foreign capital to more productive use.

Keywords: current account deficit, debt, disposable income, flow, investment, net worth, saving, stock, wealth effect