章储蓄资本形成金融市场学习目标建模chap020.pdfVIP

LearningObjectives

1.Explaintherelationshipbetweensavingsandwealth

2.Recognizeandworkwiththecomponentsofnational

saving

3.Understandthereasonspeoplesave

4.Discussthereasonsfirmschoosetoinvestincapital

ratherthanfinancialassets

5.Analyzefinancialmarketsusingthetoolsofsupply

anddemand

USHouseholdSavingRate,1960-2006

DecliningUSSavingRate

▪Householdsavingsdeclinedsincemid1980s

▪0.4%ofhouseholdein2006

▪USrateslowcomparedtoothercountries

▪Lowhouseholdsavingsratesmayhavelong-run

consequences,but

▪Lowhouseholdsavingcanbeoffsetbysavingsin

businessesorgovernment

▪Nationalsavingshasnotdeclinedsignificantly

▪Savingspictureislessdirethanhouseholdsavings

suggests

SavingsandWealth

▪Savingiscurrenteminusspendingoncurrent

needs

▪Savingrateissavingdividedbye

▪Wealthisthevalueofassetsminusliabilities

▪Assetsarethevaluethatoneowns

▪Liabilitiesarethedebtsoneowes

▪Balancesheetisalistofassetsandliabilities

▪Specificdate

▪Economicunit(business,household,etc.)

IndividualBalanceSheet,1/1/08

AssetsLiabilities

Cash$80Studentloan$3,000

Checkingaccount1,200Creditcardbalance250

Sharesofstock1,000

Car(marketvalue)3,500

Furniture(marketvalue)500

Total$6,280$3,250

Networth$3,030

FlowVariablesandStockVariables

▪Aflowvariablesisdefinedperunitoftime

▪e■Spending

▪Saving■Wage

▪Astockvariableisdefinedatapointintime

▪Wealth■Debt

▪Theflowofsavingcausesthestockofwealthto

change

▪Everydollara