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For now there seems little alternative to the dollar as a financial lodestar and the main storehouse for the world's precautionary saving.
The purpose of the present research was to investigate age differences in children's ability to apply saving strategies and adopt a precautionary saving motive when confronted with income uncertainty.
The results of this experiment show that rather than consuming too much during their income periods, subjects show a persistent precautionary saving behavior and over-save in the vast majority of periods.
Initially, economic confidence would almost certainly take a hit, and precautionary saving would increase.
Inward investment would slow, and precautionary saving would rise, slowing the economy.
The self-insurance against financial fragility is part of a more general bent towards precautionary saving in the developing world.
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This precautionary approach saved countless lives.
Dynan said that declines in the stock market are "making people feel like the future is full of uncertainty, that they're going to need to save more, they're going to need some precautionary savings because who knows what the future holds".
Greg Mankiw's blog today chides Ben Bernanke for telling the Chinese they save too much.If a friend of yours is saving a high fraction of his income, how can you tell him he is saving too much without knowing his personal rate of time preference and his desire for precautionary savings?
When sending money home, temporary migrants are engaging in a sort of precautionary savings, although accumulated in their home country, and remittances have to be considered and investigated as a type of saving decision.
More families said they were saving money as a precautionary measure, to make sure they had enough liquidity to meet short-term needs.
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