Liberty Street Economics: “Excess Savings” Are Not Excessive

F E D E R A L   R E S E R V E   B A N K   o f   N E W  Y O R K LIBERTY STREET ECONOMICS   "Excess Savings" Are Not Excessive     Florin Bilbiie, Gauti Eggertsson, Giorgio Primiceri, and Andrea Tambalotti   How the U.S. economy emerges from the COVID-19 pandemic depends in part on what will happen to the amount of "excess savings" that U.S. households have accumulated since last March. These savings are estimated to be around $1.6 trillion and counting. The authors argue that these savings are not that excessive, when considered against the backdrop of the unprecedented government interventions adopted over the past year in support of households, and that they are unlikely to generate a surge in demand post-pandemic. READ MORE

 

 

 

 

 

 

 

 

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