A World Macro Saving Fact and an Explanation
28 Pages Posted: 5 Jan 2011
Date Written: January 3, 2011
The world macro saving fact concerns the total financial saving of the world's private sector divided by world GDP. Relative to changes before 1994, there was a huge fall in this ratio between 1995 and 2000, a huge increase between 2000 and 2003, a huge fall between 2003 and 2006, and a huge increase between 2006 and 2009. The explanation is that these fluctuations appear to be driven in large part by fluctuations in stock prices and housing prices.
Keywords: Financial saving, World economy
JEL Classification: E21, E44, F41
Suggested Citation: Suggested Citation