Global savings glut or global banking glut?

Hyun Song Shin, 20 December 2011

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Since Bernanke’s 2005 speech (Bernanke 2005), it has become commonplace to assert that current-account imbalances were a key factor in stoking the permissive financial conditions that led to subprime lending in the US. The ‘global savings glut’ is what Ben Bernanke called it.

Topics: International finance
Tags: global banking glut, global savings glut

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