Re: [Pen-l] Re: Japan's Recession in Perspective

["Craig Freedman" <Craig.Freedman@xxxxxxxxxxxxx>]

The total stock of household savings remains substantial but disaggregated you will find that many households have little if any savings. This is the problem of looking at aggregates. The fall in household savings rate can be explained by stagnant income and a desire to maintain standards of living. Look at increases in income versus increases in consumption and this becomes clear.

Craig Freedman

>>> soula avramidis <soulaavramidis2002@xxxxxxxxx> 06/05/09 3:48 PM >>>
one cannot draw a conclusion of "a substantial part of the population has little if any savings" by recent figures of savings. You need to see stock figures. The stock of household savings stands still high. However, the declining trend of household savings can be explained: 1) stationary population; 2) less "forced savings" through mortgage payment as house prices have declined since the 1980s. 

your are right about austere... maybe I should have used steady!


      
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