I have a question regarding personal savings rate during recession.
During recession, people save more. Therefore increase in personal savings rate.
But does this actually help the economy recover?
Doesn't it help either way? spending or saving?
Because saving will go to banks,stocks,bonds, etc so it would help corporations/governments/etc to spend.
While spending will contribute to the market.
This is a confussing thing to me.
During recession, people save more. Therefore increase in personal savings rate.
But does this actually help the economy recover?
Doesn't it help either way? spending or saving?
Because saving will go to banks,stocks,bonds, etc so it would help corporations/governments/etc to spend.
While spending will contribute to the market.
This is a confussing thing to me.