savings ("excess savings") and a small but persistent current account deficit (a slow-motion "twin deficit"). These patterns …

We provide a simple framework connecting the distribution of excess savings across households to the dynamics of … aggregate demand. Deficit-financed fiscal transfers generate excess savings. The poorest households with the highest MPCs spend … down their excess savings the fastest, increasing other households' incomes and their excess savings. This leads to a long …

savings and investments were taxed in an arbitrary and unpredictable way, the credibility of a new regime could not be assumed …

spouses. Health evolves stochastically. Agents make consumption-savings decisions in a framework featuring an LTC state … spouse who might become a widow/widower and can expect much higher LTC costs. IC significantly reduces precautionary savings …