Cyclical precautionary saving and monetary policy
Some estimates suggest that precautionary saving may account for more than 40% of all wealth accumulation. The strength of the underlying precautionary motives is arguably closely related to risk aversion and as such is likely to fluctuate over the business cycle. In this article we study the implications of these cyclical swings in risk aversion and precautionary saving for the optimal conduct of monetary policy. JEL Classification: E32, G12
Volume (Year): 16 (2012)
Issue (Month): ()
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- Christopher Carroll & Martin Sommer & Jiri Slacalek, 2012.
"Dissecting Saving Dynamics; Measuring Wealth, Precautionary, and Credit Effects,"
IMF Working Papers
12/219, International Monetary Fund.
- Carroll, Christopher D. & Slacalek, Jiri & Sommer, Martin, 2012. "Dissecting saving dynamics: Measuring wealth, precautionary, and credit effects," CFS Working Paper Series 2012/10, Center for Financial Studies (CFS).
- Christopher Carroll & Jiri Slacalek & Martin Sommer, 2012. "Dissecting Saving Dynamics: Measuring Wealth, Precautionary, and Credit Effects," Economics Working Paper Archive 602, The Johns Hopkins University,Department of Economics.
- Slacalek, Jiri & Sommer, Martin & Carroll, Christopher, 2012. "Dissecting saving dynamics: measuring wealth, precautionary and credit effects," Working Paper Series 1474, European Central Bank.
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