Investigators from Board of Governors Federal Reserve Have Reported New Data on CDC and FDA (The Macroeconomic Effects of Excess Savings): CDC and FDA

2025 DEC 22 (NewsRx) -- By a News Reporter-Staff News Editor at CDC & FDA Daily -- Researchers detail new data in CDC and FDA. According to news reporting from Washington, District of Columbia, by NewsRx journalists, research stated, “We study how excess savings affect consumption and propagate through the macroeconomy, which permits us to evaluate the contribution of excess savings to post-pandemic inflation in the U.S. In partial equilibrium, the aggregate spending response depends on the initial distribution of excess savings and the cross-sectional heterogeneity in marginal propensities to consume.”

The news correspondents obtained a quote from the research from the Board of Governors Federal Reserve, “In general equilibrium, canonical RANK, TANK, and HANK models make markedly different predictions about the macroeconomic consequences of excess savings even if household wealth follows nearly identical paths. A quantitative HANK model matches the decumulation of the excess savings built up during the COVID-19 pandemic across the income distribution.”

According to the news reporters, the research concluded: “The model attributes about a third of the trough-to-peak change in inflation to demand fueled by excess savings.”

This research has been peer-reviewed.

For more information on this research see: The Macroeconomic Effects of Excess Savings. Journal of Monetary Economics, 2025;156. Journal of Monetary Economics can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Monetary Economics - http://www.journals.elsevier.com/journal-of-monetary-economics/)

Our news journalists report that additional information may be obtained by contacting Andreas Tischbirek, Board of Governors Federal Reserve, Bardoczy, 20TH St & Constitut Ave NW, Washington, DC 20551, United States. Additional authors for this research include Bence Bardoczy and Jae Sim.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jmoneco.2025.103847. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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