Schularick, Moritz; Wachtel, Paul - 2012
emergence of global imbalances in the 2000s. The record low household savings rate in the past decade was the product of two … borrowing in the 2000s. We present novel disaggregated estimates of the wealth effect on savings. We show that households reduce … active savings in response to gains in financial wealth and increase borrowing with rising housing wealth. Finally, we argue …
