Wednesday, April 24, 2013

Interesting Graph

Eventhough this is only a little bit of evidence, but this graph shows savings rates going up significantly before almost every recession. This could show that recession are caused by the market realizing that savings are needed, then economy slows because it is correcting itself. However there are also times when the rate does spike and no recession occurs.
Graph of Personal Saving Rate

1 comment:

  1. I just noticed that this is a graph of saving RATE, not amount. Savings rate can go up because incomes go down and the amount of saving can go down at the same time.

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