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No end to global savings glut

It depresses real rate of interest and may limit the extent to which interest rates can rise

The global savings glut is here to stay and, if anything, is likely to increase further in the foreseeable future.

READERS' reactions to the "three gluts" framework I discussed in a commentary in The Business Times on Aug 22 suggest that the thesis (first formulated by former Federal Reserve chairman Ben Bernanke a decade ago) that a secular global savings glut is largely responsible for low long-term...

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