Online: | |
Visits: | |
Stories: |
Story Views | |
Now: | |
Last Hour: | |
Last 24 Hours: | |
Total: |
from the Richmond Fed
– this post authored by Tim Sablik
What determines how individuals save and spend their income over their lifetimes? It may seem like simply a question of personal preference, but the answer can have big implications for the economy as a whole. The life cycle hypothesis, which argues that people seek to maintain the same level of consumption throughout their lifetimes, is one way that economists have answered the question – but it was not the first.