The Effects of the Saving and Banking Glut on the U.S. Economy

Alejandro Justiniano, Giorgio Primiceri and Andrea Tambalotti

No 19635, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: E20 E21 E44 F32 G21 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-ban, nep-dge, nep-mac and nep-opm
Note: EFG IFM ME
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Citations: View citations in EconPapers (5)

Published as The Effects of the Saving and Banking Glut on the U.S. Economy , Alejandro Justiniano, Giorgio E. Primiceri, Andrea Tambalotti. in NBER International Seminar on Macroeconomics 2013 , Clarida, Gopinath, and Reichlin. 2014
Published as Alejandro Justiniano & Giorgio E. Primiceri & Andrea Tambalotti, 2014. "The effects of the saving and banking glut on the U.S. economy," Journal of International Economics, vol 92, pages S52-S67.

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Related works:
Chapter: The Effects of the Saving and Banking Glut on the U.S. Economy (2013)
Working Paper: The Effects of the Saving and Banking Glut on the U.S. Economy (2013)
Working Paper: The Effects of the Saving and Banking Glut on the U.S. Economy (2013)
Working Paper: The Effects of the saving and banking glut on the U.S. economy (2013)
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