Quantitative Easing, Households' Savings and Growth: A Luxembourgish Case Study - Université de Picardie Jules Verne Accéder directement au contenu
Article Dans Une Revue The Economic Research Guardian Année : 2022

Quantitative Easing, Households' Savings and Growth: A Luxembourgish Case Study

Résumé

The aim of the paper is to evaluate the impact of Quantitative Easing (QE) on economic growth through households’ saving, in particular currency, deposits, and mutual funds. We focus on currency, deposits, and mutual funds since they represent more than 75% of the total assets of Luxembourgish households (on average more than 50% for the currency and deposits and about 25% for the mutual funds for the period 2002Q1 to 2016Q2). We try to under-line how savings’ decisions are affected by unconventional monetary policies during crisis periods, economic instability and low-interest rate environment. Different scenarios are taken into account. Three trials, with one being the base-line model, are performed. The baseline is run with the pre-crisis values for all model parameters. The first scenar-io presents a crisis environment without quantitative easing policy whereas the second Scenario introduces the QE policy in a crisis environment. According to our simple theoretical model, the saving rate decreases during an eco-nomic crisis without QE framework. This result may be interpreted as a “ratchet effect”, and increase globally when the QE program is applied. For the wealthier the precautionary saving rises (despite its weak yield) due to economic uncertainty whereas the poorest population dissave.
Fichier principal
Vignette du fichier
Goldman_ERG_2022.pdf (701.61 Ko) Télécharger le fichier
Origine Fichiers éditeurs autorisés sur une archive ouverte
Licence

Dates et versions

hal-04080189 , version 1 (24-04-2023)

Licence

Identifiants

  • HAL Id : hal-04080189 , version 1

Citer

Sarah Goldman, Shouyi Zhang. Quantitative Easing, Households' Savings and Growth: A Luxembourgish Case Study. The Economic Research Guardian, 2022, 12 (1), pp.45-54. ⟨hal-04080189⟩

Collections

U-PICARDIE LEFMI
18 Consultations
51 Téléchargements

Partager

Gmail Mastodon Facebook X LinkedIn More