KillerApps Macro: Saving
The US has been spending more than it earns and has to borrow from abroad to fund its real investment.
Savers are collateral damage in the Fedís attempt to resuscitate a comatose economy during the Great Recession.
When the general price level keeps falling in a depressed economy with high unemployment, firms and consumers might not invest or consume more no matter how low the interest rate is. Instead, they would rather hold on to the money they already have or convert other assets into money.
Social Security cannot be saved because ballooning Baby Boomer retirees will inevitably increase the financial burden on future workers
Japan's economy is stuck in a prolonged stagnation because consumers' disposable income is too low and business saving is too high.
Low saving rate in the US has kept the weak global economy afloat by putting foreign capital to more productive use.
Total 6 records
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