It's Germany on a global scale that is the concern. We worry about the drag on world demand from the global savings coming out of east Asia and the Middle East, but within Europe there's a European savings glut which is coming out of Germany. And it's much bigger relative to the size of the economy.What? Saving in now bad? Aren't we always being told that the current account deficit means we don't save enough? Doesn't the US-and New Zealand- have a problem with a lack of savings? So is saving good or bad?
(HT: Marginal Revolution)