Four Questions for Ben Bernanke on His Global Saving Glut Hypothesis
February 21, 2011 at 16:14 PM EST
Ben Bernanke delivered a speech Friday where he further developed his global saving glut (GSG) hypothesis. This view holds that the reason for the low long-term interest rates in the United States during the early-to-mid 2000s was that desired saving vastly exceeded desired investment in emerging economies. Consequently, capital flowed from these countries to the [...]