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The main reason for not saving was not having enough money left to put by.
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Hence, the binary choice of saving or not saving is modeled together with the choice of remitting or not remitting in a bivariate dynamic structure.
Whether or not savings are above normal, and therefore consumption is below normal, is central to our understanding of the economy.
"Also the financial saving wasn't huge in the end.
In reality, then, it is not savings that are unstable but the level of investment: a fall in investment and an increase in savings will both produce a dampening effect on the economy.
Negative costs mean that not only cost saving is achieved but also the mobile operator is making profits.
If not, there probably are bigger problems, and stopping saving isn't going to solve them.
"Extreme optimists don't think savings are good, don't pay off their credit cards and don't do long-term planning," Professor Puri said.
But not all savings are equal.
"The powerful thing is that saving is not about deprivation, saving is actually all about spending," Ms. Thakor said.
Dramatic turnarounds in saving are not without precedent.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com