New study reveals how precautionary savings impact business cycle fluctuations
The article explores how people save money and plan for the future, and how this affects the economy. By studying different models, the researchers found that even with unpredictable changes in income and different ages of people, the overall economy is mainly influenced by how much money is saved and invested. This means that the total amount of money available for businesses and individuals to use is a key factor in how well the economy does.