The U.S. current account deficit fell to 3 percent of GDP last year, about half the size of its previous peak. Part of this narrowing reflected a rise in household saving relative to disposable income.
These circumstances have testable implications on decision-making and choice, and should be taken into account when programs are aimed at changing people’s behaviour. 12 Over-reliance on information alone must be prevented. It is necessary to balance the possible approaches, provide clear and accessible information, provide also cognitive instruments to correctly process information and make the appropriate decisions, encourage familiarity with financial issues.