A World Macro Saving Fact and an Explanation

28 Pages Posted: 5 Jan 2011

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

Date Written: January 3, 2011

Abstract

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

Fair, Ray C., A World Macro Saving Fact and an Explanation (January 3, 2011). Cowles Foundation Discussion Paper No. 1776. Available at SSRN: https://ssrn.com/abstract=1734407 or http://dx.doi.org/10.2139/ssrn.1734407

Ray C. Fair (Contact Author)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Yale School of Management - International Center for Finance ( email )

Box 208200
New Haven, CT 06520
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

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