The Economist It has been nearly 15 years since Ben Bernanke, the former Federal Reserve Chairman, said that the global savings glut has fueled the massive current US account deficit.
But many things have changed since then. The US deficit narrowed, the surpluses of oil exporters dwindled, and central banks everywhere expanded dramatically in their balance sheets.
However, another global feature that Bernanke touched on at the beginning of 2005 is still very familiar: Asia’s stock of savings which is still huge and its size will increase annually.
For East Asia as a whole, total domestic savings add up to 35% of GDP annually, and little has changed over the past three decades.
And the British “The Economist” magazine stated that Bernanke’s concern at the beginning of the twentieth century was about the cash surplus in Asia that was flowing to the bond markets in the United States and abroad, causing real interest rates to decrease in the long run.
When the global financial crisis erupted in 2008, some economists pointed to the glut of Asian savings as the underlying reason for the housing market’s transition from an economic boom to a Great Depression, but with interest rates now low, some still ask again whether excessive savings in Asia exacerbates the problem of the global economy.
There are certainly many global shouts for 15 years. High savings rates in Asia continue to shift to large current account surpluses. The average current account surplus in East Asia has reached about $ 525 billion annually during the past five years, which is a monetary value above the average recorded in the five Years prior to the global crisis.
The magazine reported that the distribution of the surplus had shifted. The surplus of China reached its peak a decade ago, while the surpluses of South Korea and Taiwan were greater than usual.
She pointed out that the current account surplus in the major economies in Asia contributes about 0.6% of global GDP, which is almost equal to the surplus of the economies of Europe combined, including Germany.
It is one of the major global cross-border flows that affect asset markets and shrink returns globally, said Brad Seetser, an economist at the Council on Foreign Relations in New York.
The importance of the feasibility study report
The importance of the feasibility study report, if you have some experience with feasibility studies, you may know that this report is very important
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It is also often the responsibility of the project manager to control the writing of the report and it is comprehensive for all aspects of the project.
The importance of writing the report is to provide legal and technical evidence of project vitality, sustainability, cost-effectiveness, and project success
And obtaining profits, it also allows the process of preparing reports for higher management
In order to obtain the necessary information needed to make major decisions regarding budget preparation and investment planning,
Therefore, we will provide you with some important information on the importance of the feasibility study report.