Savings and the household balance sheet
The past decade and a half has seen a consistent decline in the household savings rate in New Zealand. This trend is not isolated to New Zealand, but is also occurring in other OECD countries. In addition, household indebtedness has risen at a faster rate than in other OECD countries. It is dif?cult to know how much further the savings rate will fall and household indebtedness will increase, but an adjustment in behaviour is likely at some point. The low household savings rate has contributed to an ongoing reliance on foreign savings. The banking system appears to manage the risks associated with using foreign savings well. However, as New Zealand's reliance on foreign savings increases, the economy at large potentially becomes more exposed to changes in international investor preferences, while households may become more sensitive to changes in interest rates, the labour market or house prices.
Volume (Year): 68 (2005)
Issue (Month): (June)
|Contact details of provider:|| Postal: P.O. Box 2498, Wellington|
Phone: 64 4 471-3767
Fax: 64 4 471-2270
Web page: http://www.rbnz.govt.nz
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Leslie Hull, 2003. "Financial deregulation and household indebtedness," Reserve Bank of New Zealand Discussion Paper Series DP2003/01, Reserve Bank of New Zealand.
- Iris Claus & Grant Scobie, 2002. "Saving in New Zealand: Measurement and Trends," Treasury Working Paper Series 02/02, New Zealand Treasury.
When requesting a correction, please mention this item's handle: RePEc:nzb:nzbbul:june2005:3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reserve Bank of New Zealand Knowledge Centre)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.