Precautionary saving in Iran leads to market fluctuations and decreased consumption.
The study looked at how people in Iran save money when they can't easily borrow or invest. By using a model, the researchers found that when things are uncertain, people save more just in case. In really uncertain times, about 30% of all savings in Iran are put into things like stocks or real estate. This can lead to ups and downs in prices and make people spend less than they should.