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    Explanation of savings rate decline

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    During the 1990s, the age cohort that grew the most rapidly was the 45-54 cohort, which has the highest saving rate. Yet during that same period, the personal saving rate as reported by BEA declined sharply. I'm not sure I understand what factors account for this divergence?

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    During the 1990s, the personal saving rate declined even there was a large number of baby boomers who were in their peak saving years. Because the housing and mortgage market conditions of the 1990s with low interest rates, down payments and the ...

    Solution Summary

    The decline of the personal saving rate in the 90s is uncovered.