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We study international monetary policy spillovers and spillbacks in a tractable two-country Heterogeneous Agent New Keynesian model. Relative to Representative Agent (RANK) models, our framework introduces a precautionary-savings channel, as households in both countries face uninsurable income...
Persistent link: https://www.econbiz.de/10014501129
positive and significant correlation between national saving and domestic investment rates in Latin America and the Caribbean … saving, domestic investment increases by 0.39 percentage points on average. There are however, three nuances to the headline …
Persistent link: https://www.econbiz.de/10011339421
In this paper we test for the existence of a long-run savings-investments relationship in 18 OECD economies over the period 1970-2007. Although individual modelling provides only very weak support to the hypothesis of a link between savings and investments, this cannot be ruled out as individual...
Persistent link: https://www.econbiz.de/10013129182
the relationship between domestic investment and saving: whatever the transition mechanism specified, each test strongly …
Persistent link: https://www.econbiz.de/10012985178
This paper estimates the domestic saving-investment correlations for 189 countries in the period 1980-2020 to study if … regression results show that all the saving-investment correlation coefficients are statistically significant at a 1% level and …
Persistent link: https://www.econbiz.de/10014344110
Persistent link: https://www.econbiz.de/10003612424
consumption, the precautionary saving channel and the investment-employment channel. Then, we use the household survey data (China … precautionary saving channel is more important in the urban household sample, while the investment-employment channel is more …
Persistent link: https://www.econbiz.de/10013454412
economists identify saving and the credit supply by interpreting the macroeconomic saving-investment identity as a budget … supply of credit and thus more funds to be invested by firms for investment. The paper shows that proponents of this theory …
Persistent link: https://www.econbiz.de/10010201646
argue that there is much confusion about key macroeconomic concepts like saving, investment and finance. This confusion is … best summarised in the statement "saving finances investment". After clearly defining the accounting relationships between … lending, financial saving and physical investment it will be shown that this is a nonsense statement. The theory behind it …
Persistent link: https://www.econbiz.de/10009672542
real interest rates are driven by variations in desired saving and investment. But based on data stretching back to 1870 … for 19 countries, our systematic analysis casts doubt on this view. The link between real interest rates and saving-investment … countries that dominate global monetary and financial conditions rather than common movements in global saving and investment …
Persistent link: https://www.econbiz.de/10012941033