TY  - JOUR
AU  - Justiniano, Alejandro
AU  - Primiceri, Giorgio
AU  - Tambalotti, Andrea
TI  - The Effects of the Saving and Banking Glut on the U.S. Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 19635
PY  - 2013
Y2  - November 2013
DO  - 10.3386/w19635
UR  - http://www.nber.org/papers/w19635
L1  - http://www.nber.org/papers/w19635.pdf
N1  - Author contact info:
Alejandro Justiniano
E-Mail: N/A user is deceased

Giorgio Primiceri
Department of Economics
Northwestern University
2211 Campus Drive
Evanston, IL 60208
Tel: 847/491-5395
Fax: 847/491-7001
E-Mail: g-primiceri@northwestern.edu

Andrea Tambalotti
Federal Reserve Bank of New York 
Research and Statistics Group 
33 Liberty Street, 3rd Floor 
New York, NY 10045
Tel: (212) 720-5657
E-Mail: a.tambalotti@gmail.com
M1  - published as Alejandro Justiniano, Giorgio E. Primiceri, Andrea Tambalotti. "The Effects of the Saving and Banking Glut on the U.S. Economy," in Richard Clarida, Gita Gopinath, and Lucrezia Reichlin, organizers, "NBER International Seminar on Macroeconomics 2013" Elsevier, Journal of International Economics Volume 92, Supp. 1, April 2014 (2014)

M3  - presented at "ISOM", June 21-22, 2013
AB  - We use a quantitative equilibrium model with houses, collateralized debt and foreign borrowing to study the impact of global imbalances on the U.S. economy in the 2000s. Our results suggest that the dynamics of foreign capital flows account for between one fourth and one third of the increase in U.S. house prices and household debt that preceded the financial crisis. The key to these findings is that the model generates the sustained low level of interest rates observed over that period.
ER  -