Wait, is saving good or bad? the Paradox of thrift

The average saving rate for the typical American household before the recession started in 2007 was 2.9 percent; since then it has risen to 5 percent. Uncertainty about the future was the primary driver for the increase. More saving is a good thing, right? Well, some economists argue it might be detrimental to the overall economy. Given the benefits to individuals, how could this be? This month’s Page One explores this “paradox of thrift.”

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Year of publication:	2012
Authors:	Vermann, E. Katarina ; Wolla, Scott A.
Published in:	Page One Economics Newsletter. - Federal Reserve Bank of St. Louis. - 2012, May, p. 1-3
Publisher:	Federal Reserve Bank of St. Louis

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Extent:	text/html application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011027023