The effects of the saving and banking glut on the US economy

Arbeitspapier

We use a quantitative equilibrium model with houses, collateralized debt, and foreign borrowing to study the impact of global imbalances on the U.S. economy in the 2000s. Our results suggest that the dynamics of foreign capital flows account for between one-fourth and one-third of the increase in U.S. house prices and household debt that preceded the financial crisis. The key to these findings is that the model generates the sustained low level of interest rates observed over that period.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Staff Report ; No. 648

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption, Saving, Production, Employment, and Investment: Forecasting and Simulation: Models and Applications ; Current Account Adjustment; Short-term Capital Movements ; Open Economy Macroeconomics ; Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation: Models and Applications
• Subject: U.S. trade deficit ; household debt ; Private Verschuldung ; Hypothek ; Leistungsbilanz ; Kapitalimport ; Immobilienpreis ; Spekulationsblase ; Finanzkrise ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Justiniano, Alejandro ; Primiceri, Giorgio E. ; Tambalotti, Andrea
• Event: Veröffentlichung
• (who): Federal Reserve Bank of New York
• (where): New York, NY
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/93636
• Last update: 10.03.2025, 11:41 AM CET