Household Saving

11 Pages Posted: 28 Sep 2009

See all articles by Stuart Berry

Stuart Berry

Bank of England - Monetary Analysis

Richard Williams

Bank of England - Monetary Analysis

Matt Waldron

Bank of England

Date Written: September 21, 2009

Abstract

Household decisions on whether to save or spend play a key role in the outlook for aggregate demand. A range of factors could help to explain the fall in the household saving ratio over the period 1995 to 2007. Declines in long-term real interest rates, looser credit conditions, rising asset values and greater macroeconomic stability are all likely to have reduced the incentive or the need to save. Lower household saving was also offset to some extent by higher corporate saving. Since 2007, the financial crisis and subsequent recession have unwound some of these factors and may continue to lead to a rise in household saving.

Suggested Citation

Berry, Stuart and Williams, Richard and Waldron, Matt, Household Saving (September 21, 2009). Bank of England Quarterly Bulletin, Q3 2009, Available at SSRN: https://ssrn.com/abstract=1479487

Stuart Berry (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Richard Williams

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Matt Waldron

Bank of England

Threadneedle Street
London, EC2R 8AH
United Kingdom

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