The Determinants of Private Savings in the EU: The Case of the Group of Eight New Entrant Countries.
|Author:||Mgr. Cornelius Amponsah|
|Year:||2009 - summer|
|Leaders:|| doc. Mgr. Tomáš Holub Ph.D.
|Work type:|| Masters
Specialization - IMESS
|Awards and prizes:|
|Abstract:||The trend of private saving in the CEE region has generally been low and stable with beginning of the transition process. The study demonstrates the important role key macroeconomic variables of domestic inflation and interest rates play in shaping the saving decisions of private agents. The variable that captures the extent of progress in the reforms was not found to be a strong influence on private saving. The reasoning behind this outcome is that macroeconomic stabilisation and liberalisation which inform the structure of the index used also have a direct bearing on the rate of interest and domestic inflation and therefore there is a strong linkage between these two groups of variables. The conclusion is that private saving in the CEE region can be said to be converging very fast to the pattern that pertains in the EU-15 countries.|