The relationship between temporary terms of trade shocks and household saving in developing countries is examined. It is first shown that, from a theoretical standpoint, this relationship is ambiguous: private saving may rise or fall in response to a transitory terms of trade shock, depending on...

The case studies collected in this volume provide insights into that and other related policy questions by examining what drives saving in Latin America. The studies cover Argentina, Chile, Colombia, Mexico, Peru, Uruguay, and Venezuela and span a variety of topics ranging from assessing the...