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The precautionary saving: theories, measurements and policies

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  • Valério Ercolani

Abstract

This article focuses on one particular form of saving, the precautionary saving. To this end,a simple theoretical framework is presented within which such a form of saving arises. Next, the potential risks triggering the precautionary saving are discussed. As a second step, examples which highlight the empirical importance of the precautionary saving are provided. Finally, it is shown how the precautionary motive can heavily influence the effects of both fiscal and monetary policies.

Suggested Citation

  • Valério Ercolani, . "The precautionary saving: theories, measurements and policies," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:bdpart:r201610
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