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Inflation, Capital Markets and Household Saving in the Nordic Countries

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  • Koskela, Erkki
  • Viren, Matti

Abstract

Household saving ratios in the Nordic countries are very low by international standards and have declined markedly during the 1980s. Aggregate quarterly time-series data for the period 1970-89 are used to study the development of household saving behavior over time. The evidence suggests that the household saving ratio responds positively to both the inflation rate and real income growth. There is also some weak evidence to support the view that the rate of change in real housing prices has a negative effect on household saving ratios. Copyright 1992 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Koskela, Erkki & Viren, Matti, 1992. "Inflation, Capital Markets and Household Saving in the Nordic Countries," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(2), pages 215-227.
    • Handle: RePEc:bla:scandj:v:94:y:1992:i:2:p:215-27
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