The relationship between net savings and savings, what is net savings

in macroeconomics.

There is a fixed formula for the relationship between ** difference and savings, a country's income = consumption + investment + ** difference; **Difference = (Income - Consumption) - Investment; **Difference = Savings - Investments = Net Savings.

It is a deposit activity in which urban and rural residents deposit their monetary income that is not used or surplus for the time being into banks or other financial institutions. Also known as savings deposits. The reason why real savings are not equal to investment is because real savings are output that is not consumed – the output here must be net output, i.e. output after depreciation is excluded, so real savings are equal to net investment.

This kind of actual savings includes not only the actual savings of individuals, but also the actual savings of the company, ** actual savings. Savings include deposits in the bank, valuable purchases**, and cash in hand.

In macroeconomics, it is believed that there is a fixed formula for the relationship between the difference and savings, and the deduction of this formula is derived from this (procurement and services are calculated into consumption, not separately):

A country's income = consumption + investment + ** difference (1) can be transferred to obtain: ** difference = (income - consumption) - investment (2) ** difference = savings - investment = net savings (3).

The part of savings that is greater than investment is considered net savings, and it can be seen from this formula that net savings are the best surplus of a country.

Therefore, it can be understood that the amount of savings is large, and net savings is the part of savings minus investment.

Categories: Business Banking.

Analysis: Savings is an important part of the financial assets of Chinese residents. As a valuable insurance product, it has a close relationship with financial assets.

On the one hand, the growth of savings is the potential power to translate into insurance, which is the embodiment of the savings income effect. On the other hand, since most life insurance products have the function of saving at the same time, savings have a substitute role compared to insurance. Especially when there is no absolute advantage in the yield of life insurance products or consumers are not sensitive to interest rates, the growth of a certain amount of financial assets must be distributed between savings and insurance, so the growth of savings will inevitably crowd out the demand for insurance products, which is the substitution effect of savings.

At the same time, savings and bank interest rates are closely linked, high inflation is often accompanied by high interest rates, and high interest rates can attract high savings, which is why China's insurance industry will fluctuate sharply in 93 and 98. In 93, our country was in a period of severe inflation, so insurance products did not have any advantage over savings, and people converted a large amount of income into savings, so that the income elasticity value of the year was negative. The successive interest rate cuts from '97 onwards have made life insurance yields much higher than bank rates over the same period, leading to a rush to buy insurance, so the income elasticity value is much larger than in other years.

As for the impact of savings on demand in macro analysis, it also depends on the definition of savings in economics, rather than relying only on the savings figures published by banks, which have different meanings.

There are 2 meanings:

1. Residents' net savings: It means that residents' deposits are higher than their expenditures.

2. Net Saving Country: Attacking the auction is a net export sensitive country, pointing out that there are more exports than imports. The country has a surplus.

Savings deposit refers to the activity in which an individual resident deposits all the renminbi or foreign currency belonging to him into a savings institution, and the savings institution issues a passbook or certificate of deposit as a certificate, and the individual can withdraw the principal and interest of the deposit with the passbook or certificate of deposit, and the savings institution pays the principal and interest of the deposit in accordance with the regulations.

Savings refers to the activities in which an individual deposits all the RMB or foreign currency belonging to him into a savings institution, and the savings institution issues a passbook or certificate of deposit as a certificate, and the individual can withdraw the principal and interest of the deposit with the passbook or certificate of deposit, and the savings institution pays the principal and interest of the deposit in accordance with the regulations. (2 points).

The essence of savings is a kind of credit behavior in which the owner of money deposits his surplus or temporarily idle currency into a savings institution for the purpose of preserving value, obtaining income, and adjusting his life. (2 points).

Savings behavior is a kind of credit behavior with depositors as creditors and banks and other financial institutions as debtors, which has the characteristics of the general model of credit, specifically: the autonomy of savings behavior, the temporary idleness of savings objects, accumulation, and the preservation and profitability of savings value. (2 points).

Savings deposit refers to the activity in which an individual resident deposits all the renminbi or foreign currency belonging to him into a savings institution, and the savings institution issues a passbook or certificate of deposit as a certificate, and the individual can withdraw the principal and interest of the deposit with the passbook or certificate of deposit, and the savings institution pays the principal and interest of the deposit in accordance with the regulations.

A type of deposit in a bank or other financial institution in which a resident individual deposits a currency that is not used for the time being. The original intention was to accumulate for reserve, which came into existence after the development of the productive forces of society to the point of the emergence of surplus products. It was only after the emergence of modern banks, which widely gathered small amounts of money and paid interest, that savings developed rapidly as a kind of deposit.

It is divided into two categories: current and fixed. Savings, as a kind of credit fund, can be used to increase production and construction funds by accumulating small amounts into more and turning consumption into accumulation, which can promote the adjustment of the proportion and structure of the national economy to a certain extent, and accelerate and expand the scale of the social reproduction process. As a means of credit withdrawal of money, savings can delay the realization of part of the purchasing power and is conducive to regulating the circulation of money.

Savings can also guide consumption, which is conducive to residents' planned living arrangements, thereby promoting social stability.

Savings deposit refers to the activity in which an individual resident deposits all the renminbi or foreign currency belonging to him into a savings institution, and the savings institution issues a passbook or certificate of deposit as a certificate, and the individual can withdraw the principal and interest of the deposit with the passbook or certificate of deposit, and the savings institution pays the principal and interest of the deposit in accordance with the regulations.

Savings deposit refers to the activity in which an individual resident deposits all the renminbi or foreign currency belonging to him into a savings institution, and the savings institution issues a passbook or certificate of deposit as a certificate, and the individual can withdraw the principal and interest of the deposit with the passbook or certificate of deposit, and the savings institution pays the principal and interest of the deposit in accordance with the regulations.