Historic jump in the US saving rates was accompanied by lower wages/salaries and higher government transfer payments (unemployment benefits and cash relief payments). What economist are unable to assess, and this matters for what's ahead for the economy, is the balance between forced and precautionary savings -- that is, the extent to which households were willing but unable to spend (due to the lock down) and the extent to which they are building up a higher cash buffer for the uncertain times (that is, able but not willing to spend). #economy #saving …see more