Why are interest rates so low, part 3: The Global Savings Glut || Ben Bernanke looks at whether the global savings glut is to blame for low interest rates. Global trade imbalances and unequal financial flows create account inequities, contributing to low global interest rates.

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Why are interest rates so low, part 3: The Global Savings Glut || Ben Bernanke looks at whether the global savings glut is to blame for low interest rates. Global trade imbalances and unequal financial flows create account inequities, contributing to low global interest rates.

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If that's so, then we should include the lowering or elimination of those barriers as a potentially useful antidote to secular stagnation in the US. Some years ago I discussed the macroeconomic implications of global flows of saving and investment under the rubric of the "Global savings glut".

A country with a current account surplus is saving more than it is investing domestically and using the excess savings to acquire foreign assets.

Second, the aggregate current account surplus of emerging market countries-whose large net saving was an important part of my original savings glut story-has fallen significantly since 2006.

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Why are interest rates so low, part 3: The Global Savings Glut || Ben Bernanke looks at whether the global savings glut is to blame for low interest rates. Global trade imbalances and unequal financial flows create account inequities, contributing to low global interest rates.

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