Roach dismisses global savings glut
Morgan Stanley's chief economist, Stephen Roach, has poured cold water on the "global savings glut" hypothesis championed by Fed chairman, Ben Bernanke, as the underlying cause of global economic imbalances.
Writing his weekly economic comment, Roach suggests that "contrary to widespread belief, the rise in recent years has been no faster than the expansion of world GDP."
"In fact," he points out, "the overall global saving rate stood at 22.8% of world GDP in 2006 - basically unchanged from the
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