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The rise in household saving and its implications for the Australian economy

Author

Listed:
  • Owen Freestone

    (Treasury, Government of Australia)

  • Danial Gaudry

    (Treasury, Government of Australia)

  • Anthony Obeyesekere

    (Treasury, Government of Australia)

  • Matthew Sedgwick

    (Treasury, Government of Australia)

Abstract

This paper looks at the increase in saving and the more subdued borrowing by households in recent years, exploring how this has been reflected in the household sector's financial transactions and balance sheet. The paper outlines a number of possible reasons for the turnaround and discusses the implications for the Australian economy, including the current account balance, bank funding, households' sensitivity to shocks and interest rates.

Suggested Citation

  • Owen Freestone & Danial Gaudry & Anthony Obeyesekere & Matthew Sedgwick, 2011. "The rise in household saving and its implications for the Australian economy," Economic Roundup, The Treasury, Australian Government, issue 2, pages 61-79, September.
    • Handle: RePEc:tsy:journl:journl_tsy_er_2011_2_3
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    File URL: http://www.treasury.gov.au/~/media/Treasury/Publications%20and%20Media/Publications/2011/Economic%20roundup%20issue%202/Downloads/03_household_saving.ashx
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    File URL: http://www.treasury.gov.au/PublicationsAndMedia/Publications/2011/Economic-Roundup-Issue-2/Report/The-rise-in-household-saving-and-its-implications-for-the-Australian-economy
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    References listed on IDEAS

    as
    1. Tony McDonald & Steven Morling, 2011. "The Australian economy and the global downturn, Part 2: The key quarters," Economic Roundup, The Treasury, Australian Government, issue 2, pages 33-60, September.
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    Cited by:

    1. Mary Loxton & Robert Truskett & Brigitte Scarf & Laura Sindone & George Baldry & Yinong Zhao, 2020. "Consumer Behaviour during Crises: Preliminary Research on How Coronavirus Has Manifested Consumer Panic Buying, Herd Mentality, Changing Discretionary Spending and the Role of the Media in Influencing," JRFM, MDPI, vol. 13(8), pages 1-21, July.

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    More about this item

    Keywords

    consumption; wealth;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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