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Articles and analyses from the INET community on the key economic questions of our time.

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“Savings Glut” Fables and International Trade Theory: An Autopsy

Aug 11, 2020

A “global saving glut” was invented by Ben Bernanke in 2005 as a label for positive net lending (imports exceeding exports) to the American economy by the rest of the world. However, there is a more plausible explanation for the persistent trade imbalance between the US and its major trading partners.