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Global Savings and Investment

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As global capital markets become increasingly integrated, worldwide influences on savings, investment, and real-interest-rate patterns will tend to dominate country-specific developments, according to a recent study by the Group of Ten (G10) countries. Integration should permit a growing divergence between savings and investment in any single country, and consequently should accommodate wider, more persistent current account imbalances than in the past. Though capital markets are far from completely integrated, real-interest-rate movements around the globe are becoming more closely correlated.

Suggested citation: “Global Savings and Investment,” Federal Reserve Bank of Cleveland, Economic Trends, no. 95-11, pp. 18-19, 11.01.1995.

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