Savings
in sentence
1605 examples of Savings in a sentence
Similarly, broadening the range of available
savings
instruments could raise household disposable income and increase consumption.
Earth Calling the Financial SectorNEW YORK – Financial markets serve two crucial purposes: to channel
savings
toward productive investments, and to enable individuals and businesses to manage risks through diversification and insurance.
After all, effective financial markets should convey accurate long-term information to savers and investors, thereby enabling businesses, pension funds, insurance pools, sovereign wealth funds, and others to allocate their resources to projects that provide solid long-term payoffs, and protect their
savings
from financial calamities.
But if domestic demand does not grow fast enough in surplus countries, the resulting lack of global demand relative to supply – or, equivalently, the excess of global
savings
relative to investment spending – will lead to a weaker recovery in global growth, with most economies growing far more slowly than their potential.
The same problem haunts Bernanke’s hypothesis that slow growth reflected a “global
savings
glut.”
From a Keynesian perspective, an increase in
savings
cannot explain the surge in activity that the world witnessed in the early 2000s.
Both features increased global
savings.
Recognizing the significance of this strategy exposes a common fallacy whereby the global
savings
glut is attributed to emerging-market countries’ desire to insure themselves against financial turmoil by acquiring dollar reserves.
Further contributing to the
savings
glut was growth itself.
This endogenous response to rapid productivity growth was a key factor contributing to the
savings
glut.
Old development verities that
savings
drive growth had to be re-assessed, because, to some extent, emerging-market growth drove
savings.
As
savings
(and hence the global supply of loanable funds) increased, real rates came under downward pressure.
According to Summers, high
savings
caused weak growth; under the alternative explanation offered here, it was primarily rapid growth – and its distinctive features – that drove high
savings.
But this advantage is likely to be limited, a potential
savings
of a few tenths of a basis point, given that the interest rates on similar, high-quality sovereign bonds – such as those issued by Germany and Austria – differ by only this amount.
Worryingly, QE2 appears to be viewed in the US as a growth strategy, which it isn’t, unless one believes that low interest rates will reverse the private-sector deleveraging process, raise consumption, and lower
savings
– neither a likely nor a desirable scenario.
The New MonopolistsSTANFORD – For more than 30 years in advanced economies, particularly the United States, wealth and income inequality have increased, real (inflation-adjusted) wages have risen slowly, and retirees have faced declining interest rates on
savings.
This partly explains why, during the 1985-2015 period, wages exhibited sluggish growth and retirees faced declining interest rates on their
savings.
Foreign
savings
from across Europe are seeking a safe haven in German banks.
(This would be like a family financing its down payment not from its own
savings
but from distant relatives about whom the family cares little.)
The global economy needs the surplus countries to sustain growth and reduce excess
savings
– no easy task.
The US may reduce its deficits faster than it would in the non-cooperative case, but only if surplus countries are working to reduce their excess
savings.
Basic economics courses cover the curious case of the “backward-bending supply curve of savings”: In some circumstances, lower interest rates can lead to higher
savings.
Because lower rates reduce savers’ income, they spend less, especially if they have a
savings
target for their retirement.
But while tariffs can change the composition of trade flows, they will have little bearing on the current-account balance, which is determined by national
savings
and investment.
If
savings
fall short of investment – as they do in the US – the current account will necessarily be in deficit.
To the extent that more capital income is saved relative to labor income, tariffs will increase the economy’s overall
savings
rate.
Low Japanese rates led to a “search for yield” by Japanese investors who increasingly invested their
savings
in foreign currencies, where they received higher interest rates: the famous “FX carry trade.”
First, potential growth in developed and emerging countries has fallen because of the burden of high private and public debts, rapid aging (which implies higher
savings
and lower investment), and a variety of uncertainties holding back capital spending.
According to the International Monetary Fund, China’s national
savings
is likely to hit 45% of GDP in 2017, well above Japan’s 28% saving rate.
One under-exploited resource is diaspora financing – that is, the remittances and
savings
earned by nationals working abroad and sent home to family and friends.
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