tag:blogger.com,1999:blog-5713178645208582139.post3461405835713759782..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Is "Precautionary Saving" Still a Problem?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5713178645208582139.post-67386664438871493302013-02-08T00:24:24.319-06:002013-02-08T00:24:24.319-06:00This raises a worrisome issue, that of permanent l...This raises a worrisome issue, that of permanent liquidity traps and ZLB and high savings rates. <br /><br />Many people save for reasons unrelated to interest rates; for security, for college, for retirement, to buy a business, to buy a house etc. That save even at ZLB. <br /><br />Add in a scary recession...people save even more.<br /><br />For me, this raises questions of whether QE, if not Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-30859028127527248062013-02-04T11:46:26.768-06:002013-02-04T11:46:26.768-06:00David
Twenty some years ago the young Cochrane use...David<br />Twenty some years ago the young Cochrane used consumption (non durables & services) to predict income (PIH). Now he tweaks his original model and includes "precautionary saving" for a period (08-09). As you point out, that´s not enough because "precautionary saving" is still going on, so what we need is not mainly his "structural" improvements but João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.com