The basic reason for withdrawing money from the banking sector is the precautionary motive.
2.
Historically, the precautionary motive for saving has been recognized by economists since the time of John Maynard Keynes.
3.
Their confidence in the monetary policy was shaken and their precautionary motive for holding more money was activated.
4.
More extensive research has confirmed the presence of a precautionary motive for saving within the permanent income hypothesis framework.
5.
The prudence index measures the intensity of the precautionary motive just as risk aversion measures the intensity of the desire for insurance.
6.
Lusardi ( 1998 ) confirmed that intuitions derived from economic models without a precautionary motive could be seriously misleading, even with small uncertainty.
7.
In other words, the heterogeneity of consumption / saving behavior of individuals in the economy makes it difficult to precisely quantify the precautionary motive for saving.
8.
The model was able to confirm the precautionary motive of sovereigns'accumulated assets ( as a ratio to GDP ) in response to risks of global imbalances.
9.
Under this notion, uncertainty about households'anticipated future income, due to expected unemployment, strengthens the precautionary motive for saving and hence holds down consumption spending ( cetrus paribus ).
10.
Browning and Lusardi ( 1996 ) concluded based on the empirical literature that while the precautionary motive is important for some people at some times, it is unlikely to be so for most people.
मोबाइल