higher uncertainty of the income stream increases the precautionary savings motive of households. They have a desire to save … and a precautionary savings motive will lead to procyclical capital outflows at business cycle frequency and a higher long …

higher uncertainty of the income stream increases the precautionary savings motive of households. They have a desire to save … and a precautionary savings motive will lead to procyclical capital out ows at business cycle frequency and a higher long …

increases households' precautionary savings. In the model, the combination of income risk and the precautionary savings motive …

savings where corporate savings dominate. In the mid-2000s, the extent of liquidity was further amplified by massive capital …