Can Saving Too Much Money Cause a Recession?
Economics Explained
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The Side Effects of Saving Money
Saving means that people aren't spending which looks bad for growth figures. But there are other issues that can come from people pulling their money out of businesses, especially all at one time. A genuine reduction in quality of life is the worst outcome an economy can produce. Too much saving combined with a lack of demand will mean that there's only so many good, safe loans that can be written.
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