Fifteen years ago, our household saving rate was not too bad by developed country standards. But by 2000, we had slipped down to the bottom of the OECD developed-country class. By that year, our households were, in aggregate, spending more than their income. The OECD average saving rate that year was 8.4 per cent.
This trend has shown at least three important facets: first, authorities have resorted to unconventional tools never tried before; second, the degree of monetary accommodation achieved is unprecedented; and third, the tendency has been widespread, encompassing most major central banks, following the lead of the U.S. Federal Reserve.