Talk abounds of a global savings glut.

The global savings glut is the result of this perverse relationship.

American officials have long bemoaned China s saving glut as a major source of global instability.

The puzzle of the global savings glut may live on for several years to come.

Thus, there is a global slackening of aggregate demand relative to the glut of supply capacity, which will impede a robust global economic recovery.

Consequently, rather than facing a savings glut, the global economy faces a problem of demand failure in developing countries.

Neither would it have stopped the global saving glut from turning into a ticking time bomb for the world economy.

Remarks by Federal Reserve Governor Ben S. Bernanke at the Sandridge Lecture entitled The Global Saving Glut and the U.S.

Ben Bernanke, the US Federal Reserve chairman, once famously pinned the whole US current account deficit on a global savings glut.

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.

This East Asian savings glut enabled a debt fuelled consumption glut in the US, Britain, and much of the Western world.

Talk abounds of a global savings glut. In fact, the world economy suffers not from too much saving, but from too little investment.

US Federal Reserve Board Chairman Ben Bernanke s notion of a global savings glut is a commonly cited explanation for falling world interest rates.

First and foremost, there is the global savings glut, an idea popularized by current Federal Reserve Chairman Ben Bernanke in a 2005 speech.

US Federal Reserve Board Chairman Ben Bernanke s notion of a global savings glut is a commonly cited explanation for falling world interest rates.

America certainly does not have a savings glut.

America has a savings deficiency, not a glut.

But no solution is possible until we abandon the savings shortage and savings glut hypotheses and connect today s global financial imbalances with global production patterns and inadequate demand in developing countries.

The natural interest rate was low because, as the Fed s current chairman Ben Bernanke explained at the time, the world had a global savings glut (or, rather, a global investment deficiency).

According to standard trade theory, a global labor glut ought to imply an increased rate of return on capital, which again pushes interest rates up, not down.

It feels like we're all suffering from information overload or data glut.

There were no protective mechanisms to prevent a global liquidity glut from developing, and then, in combination with US regulatory failings, from producing a spectacular housing boom and crash.

But forces beyond Madi s control even beyond his awareness are restraining cotton prices, creating a global glut that is largely the result of policies followed by the world s richest governments.

Both the savings shortage and savings glut hypotheses confuse accounting outcomes with causes.

And the rest of the world? A global savings glut would suggest that rebalancing the world economy requires policies to boost America s savings rate and to increase non US households consumption.

If the US is unable or unwilling to run the required deficits, the global economy will flounder in a savings glut of low demand and cheap capital until another alternative emerges.

These days the Chairman of President Bush s Council of Economic Advisers, Ben Bernanke, likes to talk about a global savings glut that has produced astonishingly low real interest rates around the world.

The glut of medical specialists on the labour market has also helped to achieve results.

The fires of the US sub prime mortgage crisis were stoked not just by domestic regulatory failures, but also by a global saving glut, which sent banks on a wild goose chase for yield.

But what the world economy is facing is not a savings glut, but an investment deficiency.

This interpretation of the origins of the present slump is disputed by the money glut school.

Similarly, the integration of emerging market countries into the global economy has brought with it a flood of labor. According to standard trade theory, a global labor glut ought to imply an increased rate of return on capital, which again pushes interest rates up, not down.

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.

Current Fed Chairman Ben Bernanke raised this idea a few years ago, alleging a world saving glut.

The problem of current account imbalances is closely linked to the existence of a world savings glut.

Credit constraints in fast growing developing economies may be the reason why the glut emerged in the first place.

This story is fundamentally different from the savings shortage and savings glut hypotheses, and it leads to dramatically different policies.

Others cite the so called capital glut large inflows of external financing from China and much of the developing world.

Ben Bernanke, the Chairman of President George W. Bush s Council of Economic Advisors and a likely candidate to succeed Alan Greenspan as the Federal Reserve s chairman in January, has called the decline in real interest rates over just the last decade a global savings glut.

There is a glut of film, the quality has to be raised, they need to go to the next level, but I m optimistic.

There is a glut of film, the quality has to be raised, they need to go to the next level, but I'm optimistic.

They were talking about Exxon Valdez, and that there was going to be a glut of oil tankers because of the insurance industries.

If nominal and real depreciation (appreciation) of the deficit (surplus) countries fails to occur, the deficit countries falling domestic demand and the surplus countries failure to reduce savings and increase consumption will lead to a global shortfall in aggregate demand in the face of a capacity glut.

But economists disagree on why we have the glut, how long it will last, and, most fundamentally, on whether it is a good thing.

Some blame a global savings glut for this state of affairs, and call for less thrift. But if we were at full employment, we would recognize that the world still has mammoth growth opportunities, and to sacrifice future growth for current well being is a second best choice.