Savings
in sentence
1605 examples of Savings in a sentence
There is a significant chance that with Americans
' savings
rate at dismally low levels - sustained last year by car purchases and home refinancing - consumer spending may moderate.
Turkey has also amended its tax laws to penalize excessive external borrowing by non-financial firms and to introduce significant incentives aimed at encouraging long-term household
savings.
With Turkey’s external deficit equivalent to 6% of GDP, the authorities have adopted a macro-prudential framework that combines policies to reduce exchange-rate volatility in the very short term with measures to increase domestic
savings
and promote the real sector’s international competitiveness in the long run.
Furthermore, excess
savings
could be more than just a cyclical phenomenon.
We can, however, count on rising rates of female labor-force participation (spurred by continued low fertility), increased levels of effective labor as educational attainment continues to rise, and higher
savings
rates in anticipation of greater longevity and longer retirements.
The current-account surplus, which was supposed to decline sharply, has actually increased, as
savings
have remained higher – and investment lower – than expected.
For 35 years, I have put my spare
savings
into Vanguard index funds, and done very well with it.
They should begin by reforming the property-rights regime to enable market forces to balance the supply and demand of
savings
and investments in a manner that maintains credit discipline and transparency.
Nowhere is this clearer than in discussions of the United States’ trade deficit and global financial imbalances, given economists’ tendency to reduce most economic problems to questions of
savings.
Unfortunately, this focus on
savings
distorts understanding and distracts from the real challenge of creating mass consumption markets in developing countries.
From an accountant’s perspective, that makes it logical to label trade deficits as negative
savings.
Most economists go a step further, asserting that the US deficit is caused by a
savings
shortage.
But, since one country’s trade deficit is another’s surplus, US Federal Reserve Chairman Ben Bernanke has argued for turning the conventional logic on its head: rather than resulting from a
savings
shortage, the US trade deficit is the result of a global
savings
glut – especially in China.
How does a
savings
glut translate into exports, given that households do not export?
Both the
savings
shortage and
savings
glut hypotheses confuse accounting outcomes with causes.
This story is fundamentally different from the
savings
shortage and
savings
glut hypotheses, and it leads to dramatically different policies.
Consequently, rather than facing a
savings
glut, the global economy faces a problem of demand failure in developing countries.
That requires expanding markets in developing countries, which means tackling income inequality and getting income into the right hands – an enormous organizational challenge that is off the radar because economists focus exclusively on
savings
and supply-side issues.
But no solution is possible until we abandon the
savings
shortage and
savings
glut hypotheses and connect today’s global financial imbalances with global production patterns and inadequate demand in developing countries.
This reflects the declining share of wages in total GDP and the rising share of
savings
relative to household incomes.
With Japan’s high saving rate (a function of Japan’s aging population) and with investments held down by rates of return that diminished as Japan invested heavily during the postwar period, Japan’s excess
savings
naturally sought outlets abroad.
US advice was: cut the
savings
rate.
Thus, higher household
savings
negated the stimulus of government deficits.
In particular, they should pursue policies that foster the creation of quality jobs and the transfer of more corporate
savings
to households.
The efficiency
savings
of academia occur downstream from the activities of the universities themselves.
These benefits come in the form of new and better goods and services, as well as efficiency
savings
for businesses, consumers, and citizens.
There is only one problem: the data show little evidence of a
savings
glut.
Since 1980, global
savings
have fluctuated between 22% and 24% of world GDP, with little tendency to trend up or down.
But to affect global interest rates, these trends have to translate into increased global
savings.
It is promising to live within its means forever, and rely on internal
savings
and external investment for growth – far short of what any large country, controlling its own currency, would do when facing a comparable disaster.
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