tag:blogger.com,1999:blog-3448927642739850334.post3457111244106787490..comments2023-10-29T08:06:00.610+00:00Comments on The Political Economist: Modern consumption theory - temporary vs permanent incomeVuk Vukovichttp://www.blogger.com/profile/01878567452492217960noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-3448927642739850334.post-58902223318975747362016-06-20T17:28:02.726+01:002016-06-20T17:28:02.726+01:00Such a great information that you have shared with...Such a great information that you have shared with us. Money investing is the best method to secure future. Thanks for sharing this useful blog and give a right path to think about investing.Thomas Barnardhttp://focused-investing.com/noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-38178259996670983092013-01-16T01:13:48.629+00:002013-01-16T01:13:48.629+00:00Interesing BlogInteresing BlogQUALITY STOCKS UNDER 5 DOLLARShttp://www.zipleaf.us/Companies/The-Manhattan-Calumet-Value-Stock-Hotlinenoreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-46055917772855621522012-04-26T20:31:09.725+01:002012-04-26T20:31:09.725+01:00*sorry, expectations of future income*sorry, expectations of future incomeVuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-55738475846097257052012-04-26T20:27:12.171+01:002012-04-26T20:27:12.171+01:00If you take a look at this graph you can notice a ...If you take a look at <a href="http://research.stlouisfed.org/fred2/graph/fredgraph.png?&id=PSAVERT,GPDI&scale=Left,Right&range=Max,Max&cosd=1959-01-01,1947-01-01&coed=2012-02-01,2011-10-01&line_color=%230000ff,%23ff0000&link_values=false,false&line_style=Solid,Solid&mark_type=NONE,NONE&mw=4,4&lw=1,1&ost=-99999,-99999&oet=99999,99999&mma=0,0&fml=a,a&fq=Monthly,Quarterly&fam=avg,avg&fgst=lin,lin&transformation=lin,lin&vintage_date=2012-04-26,2012-04-26&revision_date=2012-04-26,2012-04-26" rel="nofollow">this graph</a> you can notice a sort of an inverted relationship between domestic private investments and the savings rate, which is a logical effect - in good times people choose to invest more, while in bad ones, they save up due to uncertain times.<br /><br />the effect can again be explain through the prism of temporary vs. permanent income - based on the expectations of the current income, people will chose their current rates of spending, investments and savings.Vuk Vukovichttps://www.blogger.com/profile/01878567452492217960noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-45745084771909777292012-04-25T23:04:19.690+01:002012-04-25T23:04:19.690+01:00It would be interesting to see what was the amount...It would be interesting to see what was the amount of investments in the same period according to the S = I equation. Maybe mechanism gives in a way that consumer "give" money to the banks (or life insurers) and they invest it "for them".Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-37713625254108235172012-04-17T11:40:06.271+01:002012-04-17T11:40:06.271+01:00The current increase of the savings rate is a temp...The current increase of the savings rate is a temporary phenomenon and can only be linked to the effects of the crisis. When people are uncertain they save more. As soon as they start feeling confident enough to start spending (or investing) they will do so and the savings rate will go down again. <br /><br />I don't agree with you that the market is sending a signal to have higher savings rates in order to curb risk-taking. The development of the economy from the 70s and the 80s was grand - information circulates much faster and is widely available, consumption is moving online, consumer credit became easier to get and so on. In such a dynamic, consumerist economy, it's hard to expect to have the savings rate go back to 10%. People simply have much more to do with their money today.Mikehttps://www.blogger.com/profile/14413273098082958690noreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-90710675590424790382012-04-15T12:14:29.629+01:002012-04-15T12:14:29.629+01:00the savings rate decrease all these years is good ...the savings rate decrease all these years is good proof of overheating and systemic instability that accumulated over the last 20 years. It describes well Bernanke's global savings glut story. Maybe we really do need to save more money and the crisis was a signal for us to start doing that again. A 2.5% savings rate was too low to keep risk-taking under control. I would even think of linking this to the rise of the financial sector during the last 20 years, as the fall of the savings rate and the financialization of the system tend to collide. I would say that in Britain this was even more obvious since the "Big Bang" in the 80sCharlienoreply@blogger.comtag:blogger.com,1999:blog-3448927642739850334.post-62759162713744587302012-04-12T23:11:43.243+01:002012-04-12T23:11:43.243+01:00I don't know about temporary and permanent inc...I don't know about temporary and permanent income, but I am tolerably certain that temporary tax cuts do absolutely nothing. They have no noticeable stimulative effect. If fact they may be worse than nothing since they represent some change and instability.kyle8https://www.blogger.com/profile/13299846346032212714noreply@blogger.com