Has the Crisis Made Savers More Careful?

Arrondel, Luc

Has the Crisis Made Savers More Careful? - 2011.


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The current economic and financial crisis, which began in 2007, has been through different stages driven by key events: the subprime crisis of summer 2007 and the bursting of the US housing market bubble of the 2000s; the global financial market collapse in autumn 2008 after the failure of several US banks; and widening public deficits in many countries in 2009 as public finances as governments have implemented stimulus plans to mitigate the effects of the recession. How have savers reacted to the crisis, the vagaries of the markets, tighter lending conditions, expectations of falling house prices, and alarmist forecasts for purchasing power and unemployment? The saving rate of French “ants” has remained high, even increasing in 2009. At the same time, the pace of consumption has slowed sharply. Elsewhere in Europe, the saving rate increased almost everywhere between 2007 and 2009, especially in the countries worst affected by the crisis. How have savers “assimilated” these changes? In France, most macroeconomic indicators and opinion surveys seem to show that household behaviour has become more prudent and foresighted, with a shift away from the stockmarket into safer, longer-term investments.

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