Savings
in sentence
1605 examples of Savings in a sentence
Harvard’s Lawrence H. Summers got a lot of attention for his argument that the world risked sliding toward “secular stagnation,” because the interest rate needed to bring desired investment in line with desired
savings
was below zero.
Hard-pressed American households slashed their
savings
rates, borrowed against their home equity, and increased their debt to maintain consumption, contributing to the housing and credit bubbles that burst in 2008, requiring painful deleveraging ever since.
The Bachelet administration moved to curtail voucher-financed private schools, ended for-profit education, refused to build new hospitals via public-private partnerships, and would not allow private firms to manage additional retirement
savings.
An examination of the spending and saving patterns of households with twins born under the one-child policy suggests that these changes could lead to a drop of 8-9 percentage points in China’s household
savings
rate – to around 22% – in the coming decades.
Republican political operatives care far less about national
savings
than they do about manufacturing-sector job losses.
As it has developed, Asia has been exporting its savings, through a trade surplus with the United States, and re-importing them, in the form of direct and portfolio investment via New York and London – a process that has created severe, though largely overlooked, financial tensions.
Why don’t Asian countries invest their
savings
within their own region?
The problem is that, two decades after the Asian financial crisis, there has been little progress in institutionalizing Asian financial intermediaries that will channel
savings
to high-return projects within the region.
But, instead of supporting Asian financial institutions’ capacity to take over the intermediation of the region’s savings, Asian financial regulators are focused on adopting the new global financial regulatory standards being pushed by their American and European counterparts – standards that American and European politicians are threatening to unwind.
Such policies will push Asian investment further into the dollar trap, because Asian
savings
will be used to chase speculative dollar-denominated assets outside the region, instead of to meet Asia’s own needs.
In the meantime, the central banks of leading Asian surplus economies (particularly China and Japan) need to work with other major central banks (especially the European Central Bank and the Bank of England) to change how excess
savings
in high-growth regions are used.
The goal should be to ensure that
savings
in surplus countries – including, say, Germany, which has a larger current-account surplus than China and Japan – are used wisely, to help sustain growth throughout the world economy.
The company says that its ability to move goods freely within the single market is a significant benefit, one that eliminates the need for expensive paperwork for intra-EU shipments and brings direct cost
savings
and economies of scale.
The great majority of the roughly 24 million private individuals estimated to have gone into business between 1980 and 2005 were ordinary folk with very small capital – usually obtained by pooling the
savings
of family members and perhaps friends.
Its viability would depend on citizens’ willingness to finance their government by investing their
savings
in its sovereign bonds, rather than pursuing more diversified and profitable portfolios.
Instead, the government has put forward a fresh round of fiscal stimulation, including a RMB60 billion new bond issue and the introduction of a new 20% tax on the interest on
savings.
Large budget deficits are absorbing the national
savings
that should be used to expand business investment, and are increasing the national debt that will have to be financed by future taxes.
These include epic crises in the Scandinavian countries, Spain, and Japan, along with lesser events such as the US
savings
and loan crises of the 1980’s.
The middle class continues to cling to the hope that their
savings
can be salvaged, but these funds, which are now frozen in the nation's banks, are unlikely ever to be at anyone's disposal.
According to Barro, the consequences of enhanced fear of a general or unpredictable catastrophe depend on how it affects the global pool of
savings.
Fear as much as institutional blockages may be the source of what is either a global
savings
glut or a global investment shortfall, depending on how you view it.
Furthermore, extremely low levels of private
savings
and traditionally meager consumption needs (about 70% of the population consider $100 to be a sufficient monthly income for a family member) start to impede internal demand growth and internal production development.
Consequently, Russia has a defunct system of private savings, which could have stabilised its economy and been used as a basis for investment into its development and growth.
Perhaps not surprisingly, the first rigorous test published on the impact of solar panels on the lives of poor people found that while they got a little more electricity, there was no measurable impact on their lives: they did not increase
savings
or spending, they did not work more or start more businesses, and their children did not study more.
That combination produces a high ratio of workers to dependents – both retirees and children – making it easier for high
savings
to support sufficient investment to drive rapid growth in capital stock.
By now, everyone accepts some version of US Federal Reserve Chairman Ben Bernanke’s statement in 2005 that a “global
savings
glut” is at the root of the problem.
Bernanke’s original speech emphasized several factors – some that decreased the demand for global savings, and some that increased supply.
Another class of academic theories follows Bernanke (and, even earlier, Michael Dooley, David Folkerts-Landau, and Peter Garber) in attributing low long-term interest rates to the growing importance of emerging economies, but with the major emphasis on private
savings
rather than public
savings.
These explanations have some merit, but one should recognize that central banks and sovereign wealth funds, not private citizens, are the players most directly responsible for the big
savings
surpluses.
The puzzle of the global
savings
glut may live on for several years to come.
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