Does the increase in French people’s liquid savings stem from forced or forced savings or from precautionary savings?
Households were in confinement, which limited their consumption capacity, mechanically increasing the savings rate. It went from 15% of gross disposable income before the crisis to 35 or even 40%. This forced or suffered savings has inflated both demand deposits and savings books. The collection on the Livret A would probably have been much higher if many bank branches or savings banks had not been closed. However, the historical collection of the Livret A in April also falls under precautionary savings. Households have voluntarily decided to place part of their cash from their current accounts in their Livret A in order to cope with the days that look more uncertain.
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