Savings
in sentence
1605 examples of Savings in a sentence
Most likely, they will end up getting off too easy, especially compared to the real victims of this historic tragedy – the most vulnerable segments of the Greek population, who will become much worse off, today and for many years to come, as jobs disappear,
savings
evaporate, and livelihoods are destroyed.
Nonetheless, several features of current growth patterns stand out: excess productive capacity, persistent high leverage, declining labor content in goods-and-services production, and an increasingly unequal distribution of income both between labor and capital, and across labor-income segments, with their differential
savings
rates.
And, reflecting the aging of Japanese society, the household
savings
rate itself will decline dramatically, making it difficult for the private sector to finance annual budget deficits.
The particular case that John Maynard Keynes identified was the “paradox of thrift”: if everyone tries to save more in bad times, aggregate demand will fall, lowering total savings, because of the decrease in consumption and economic growth.
For China, those flaws include a weak social safety net, which has raised
savings
rates, and the backwardness of a state banking system that has lowered investments and sent excess
savings
abroad.
Because the current-account balance is the difference between the investment and
savings
rates, the decline in investment will generate large surpluses unless
savings
also decline.
And the experience of other aging societies, such as Germany and Japan, suggests that domestic investment falls faster than
savings
rates.
India would undoubtedly benefit, though it is unlikely to absorb a significant portion of China’s excess
savings.
Furthermore, East Asia’s growth model has been sustained ultimately by mobilizing rising domestic
savings
and pumping out exports.
Germany’s investment-savings gap is so large that, even if it increases domestic investment, the most we can expect from Europe is that it does not add to the global
savings
glut.
After all, the real reason that Keynesian thinking took hold was that its method of calculating aggregate consumption, investment, and
savings
proved invaluable for American and British military planning during World War II.
But if we try to escort the northern
savings
via Eurobonds to the south, exactly the opposite will happen.
Investment experts urge us to put our
savings
in "emerging markets", since these are certain to grow three times more strongly than the sclerotic, over-regulated economies of Europe and America for decades.
Moreover, for too many investors, Portugal, with its poor growth prospects and insufficient domestic
savings
to fund the public-sector deficit, looks like Greece.
Savings
must be channeled to firms that need capital for innovation and sustainable job creation.
It starts from the recognition that large surplus
savings
and much unused capacity are waiting to be mobilized, and that expanding consumer demand among Asia’s rising middle class holds the key to expansion.
In institutional terms, long-term reform should aim for a shift to a pension system based on individual
savings
accounts, as in Chile, as opposed to the current state run, pay-as-you-go pension systems.
Individual
savings
let each household choose its own level of
savings
to accord with its preferences and needs.
In fact, throughout history, governments have had strong political incentives to monetize the deficit, with the subsequent inflation reducing the debt burden (and effectively confiscating the borrowed savings).
Last year, she managed to get electricity connected to her shack, and she invested her
savings
in a refrigerator to store food and drinks for resale.
But raising below-target inflation to 2% leaves people worse off, as it causes their
savings
to lose value continuously, thereby undermining their prosperity.
These growth- and productivity-enhancing investments should be financed primarily from domestic savings, though some can also be financed with debt.
For example, after the 2008 financial crisis, while the US pressed China to let its currency appreciate, officials at China’s central bank began arguing that America needed to increase its savings, reduce its deficits, and move toward supplementing the dollar’s role as a reserve currency with IMF-issued special drawing rights.
This would require politically difficult shifts in consumption and investment, with America increasing its
savings
and China increasing domestic consumption.
The options are higher investment levels financed by domestic savings, productivity growth, and increased competitiveness, or stagnant real incomes as rebalancing occurs through the exchange-rate mechanism (or a large dose of domestic deflation in the debt-distressed eurozone countries, since they do not control their own exchange rates).
Excess
savings
have been transferred from the core to the periphery, creating conditions for extensive borrowing and accumulation of debt.
Internationally agreed rules stipulate that banks must create capital reserves commensurate to the risks that they take when they invest depositors’
savings.
Moreover, it is difficult for politicians to see that their budgets compete for a limited pool of
savings.
An Alternative to Deposit InsuranceArgentina's financial panic and the run on its banks that ensued, as well as Asia's financial crisis of 1997, have forced a number of countries to consider adopting deposit insurance schemes to protect their citizens
' savings.
There can be no doubting, for example, that China has a keen interest in allocating its vast stockpile of
savings
to productive use on projects undertaken abroad.
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