Glenn Hubbard on the Global Savings Glut
Dr. Hubbard dismisses the Keynesian paradox of thrift argument and focuses on Asian financial disintermediation (hat tip to Tyler Cowen). Dr. Hubbard also seems to have freed himself from having to defend the long-term fiscal stimulus of the Bush Administration:
The rise in the global saving rate is more than accounted for by a higher saving rate in emerging economies, particularly in Asia. I say “more than accounted for” because the U.S., the world’s largest economy, reduced its national saving over the same period.