Savings
in sentence
1605 examples of Savings in a sentence
But it is perfectly sensible and legitimate for China to put some of its
savings
abroad.
As any economist knows, a deficit in goods and services is a macroeconomic phenomenon reflecting a country’s domestic expenditures and
savings.
For the US to shrink its overall deficit, it must either reduce expenditures or increase
savings.
First and foremost, there is the “global
savings
glut,” an idea popularized by current Federal Reserve Chairman Ben Bernanke in a 2005 speech.
For starters, the same forces that led to an upward shift in the global
savings
curve will soon enough begin operating in the other direction.
Japan, for example, is starting to experience a huge retirement bulge, implying a sharp reduction in
savings
as the elderly start to draw down lifetime reserves.
On the other hand, net-foreign-asset positions of countries with a short-term orientation and a low
savings
rate tend to deteriorate, while their foreign debts mounts.
If the private sector believes that taxes will have to rise to pay for government borrowing, according to this view, people will increase their
savings
to pay the higher taxes, thus destroying any stimulative effect.
And, while structural reforms are necessary, some measures – for example, labor-market liberalization and pension overhauls – may boost the eurozone’s
savings
rate and thus weaken aggregate demand further (as occurred in Germany following its structural reforms a decade ago).
The resulting rise in inequality has been exacerbated by China’s capital controls and mandated low interest rates on
savings.
They point to the
savings
available from energy efficiency, and to the market opportunities generated by clean-energy technologies as the processes of learning and discovery take hold.
Using a conservative model, the British medical journal Lancet estimated that the US would have recorded net
savings
of $500 million if it had implemented a national syringe exchange program between 1987-1995.
This is good for Europe, because it helps improve the allocation of capital and stimulates growth by transporting German
savings
to the remote and previously disadvantaged regions of the euro zone.
One of the great challenges ahead is to find a way to bring these two countries’
savings
into line, given the vast trade imbalances that many believe planted the seeds of financial crisis.
The same week, a former student of mine who lost his lucrative financial-sector job explained that he had no
savings
because it was so expensive to date in New York!
The prolonged recession and economic malaise have dented the individual
savings
rate, while banks no longer have the resources to provide peace of mind to many retail investors, whose trust has been severely eroded.
With banking assets amounting to roughly 300% of EU-wide GDP, compared to some 70% in the United States, large pools of
savings
are being left unused.
The conservative economist responds that it is precisely because the government has become so free with taxpayers’ money that households, fearful of future taxes, are hunkering down and increasing
savings.
Government spending – especially on unemployment benefits, aid to states, and some construction projects – probably helped avert a more wrenching downturn, but continued red ink worries households, which are also trying to rebuild
savings
and reduce debt after a spending binge.
The capital account is less open, foreign-currency reserves of $2.5 trillion mean that the exchange rate is controllable, and, with
savings
exceeding investment (the current-account surplus is declining but still positive), China is not dependent on foreign capital.
Elsewhere, too, depositors are beginning to transfer their
savings
to the strongest economy (Germany) and to safe havens beyond (Switzerland and the United States).
China represents what might be called the Economic Security State: seeking to channel domestic
savings
into household consumption to sustain GDP growth and popular support, while using its investment power abroad to secure the commodities and energy that underpin its industrialization.
If the Greek government defaulted or tried to abandon the euro, Greece’s banks would collapse, and Greeks who failed to get their money out of the country would lose their savings, as occurred in Cyprus in 2013.
Whereas the public-sector deficit was 3% of GDP in the early 2000s, Germany runs a small surplus today, which is a perfectly reasonable reaction, as is the increase in private retirement
savings.
At the moment, it makes more sense to invest the additional
savings
abroad, because population aging in Germany limits the potential for useful investment at home, and other markets are growing faster.
That is why we must take steps that will facilitate energy
savings
as well.
Before World War I, capital flowed in one direction: from rich countries with excess savings, such as the United Kingdom, to countries like Australia or Argentina, whose investment needs exceeded domestic
savings.
Such accounts would work something like a
savings
account, with their owners augmenting a substantial public contribution to them by working, studying, or performing certain types of national service.
To be sure, it remains the world’s eighth-largest economy, with a per capita income of roughly €26,000 ($29,300) and a relatively high gross
savings
rate of 18% of GDP.
For starters, because the current account reflects the difference between a country’s
savings
and investment, Germany is assumed to be saving too much and investing too little.
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