Financial liberalization in Finland leads to increased indebtedness and decreased saving rates.
The article explores how people in Finland save money to prepare for future changes in their income. Researchers found that changes in saving rates were influenced by factors like increased debt, housing expenses, and income expectations. They also discovered that people's saving habits are influenced by both past and future income, as well as interest rates. The study suggests that traditional theories about saving may not fully explain people's behavior, and introduces a new theory called the precautionary buffer-stock theory as an alternative.