B) INCREASING SAVINGS & INVESTMENT - 2 POLICY AREAS:
Savings
By avoiding inflation, avoid volatility of real interest rates on deposits, & high positive rates.
Ensure security of banks & convenient to small & rural savers.
Japan, Korea, Malaysia, Singapore & Taiwan established postal savings system, which lowered the transaction costs. These initiatives promoted rapid growth of deposits in financial institutions.
Some Government use interventionist mechanisms to increase savings.
B) INCREASING SAVINGS & INVESTMENT - 2 POLICY AREAS:
Savings
By avoiding inflation, avoid volatility of real interest rates on deposits, & high positive rates.
Ensure security of banks & convenient to small & rural savers.
Japan, Korea, Malaysia, Singapore & Taiwan established postal savings system, which lowered the transaction costs. These initiatives promoted rapid growth of deposits in financial institutions.
Some Government use interventionist mechanisms to increase savings.
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