TY - BOOK ID - 11263838 TI - Frugality : Are We Fretting Too Much? Household Saving and Assets in the United States AU - Tanner, Evan. AU - Abdih, Yasser. AU - International Monetary Fund. AU - IMF Institute. PY - 2009 SN - 1451917678 1452779325 9786612844058 1282844059 1451873441 1462342647 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Saving and investment KW - Income KW - Wealth KW - Econometric models. KW - Affluence KW - Distribution of wealth KW - Fortunes KW - Riches KW - Family income KW - Household income KW - Personal income KW - Accumulation, Capital KW - Capital accumulation KW - Capital formation KW - Investment and saving KW - Saving and thrift KW - Business KW - Economics KW - Finance KW - Capital KW - Money KW - Property KW - Well-being KW - Gross national product KW - Profit KW - Purchasing power KW - Supply-side economics KW - Investments KW - Investments: Stocks KW - Macroeconomics KW - Personal Income, Wealth, and Their Distributions KW - Aggregate Factor Income Distribution KW - Macroeconomics: Consumption KW - Saving KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Investment & securities KW - Disposable income KW - Consumption KW - Stocks KW - National income KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:11263838 AB - Household savings rates in the United States have recently crept up from all-time lows. Some have suggested that a shift toward frugality will hamper GDP growth-the Keynesian "paradox of thrift." We estimate that households compensate for a fall in their asset income by saving more out of their labor income, dollar-for-dollar. In the wake of the crisis, our model predicts that such primary savings will increase, but only temporarily and modestly, as household assets stabilize. As savings flows gradually accumulate, they help rebuild corporate net worth and hence firms' capacity to make capital investments. A timely return to pre-crisis levels of capital investment would require that U.S. households save substantially more than the model predicts, starting now. Hence, we should fret that our savings rates may be too low. ER -