There were no protective mechanisms to prevent a global liquidity glut from developing, and then, in combination with US regulatory failings, from producing a spectacular housing boom and crash.

This East Asian savings glut enabled a debt fuelled consumption glut in the US, Britain, and much of the Western world.

Talk abounds of a global savings glut.

America certainly does not have a savings glut.

America has a savings deficiency, not a glut.

Call it information liquidity, akin to financial liquidity.

The global savings glut is the result of this perverse relationship.

Both the savings shortage and savings glut hypotheses confuse accounting outcomes with causes.

Is Liquidity Enough?

The Liquidity Puzzle

The Liquidity Time Bomb

American officials have long bemoaned China s saving glut as a major source of global instability.

The puzzle of the global savings glut may live on for several years to come.

The glut of medical specialists on the labour market has also helped to achieve results.

But what the world economy is facing is not a savings glut, but an investment deficiency.

This interpretation of the origins of the present slump is disputed by the money glut school.

Confronting the Coming Liquidity Crisis

The IMF recently established the Short Term Liquidity Facility to help strong performing members facing temporary liquidity problems.

Current Fed Chairman Ben Bernanke raised this idea a few years ago, alleging a world saving glut.

The problem of current account imbalances is closely linked to the existence of a world savings glut.

The third problem concerns international liquidity.

The fact that there is even a small liquidity crunch for banks implies larger liquidity crunches for less intensively regulated financial institutions, and even greater liquidity crunches for manufacturing and real estate companies.

Consequently, rather than facing a savings glut, the global economy faces a problem of demand failure in developing countries.

Credit constraints in fast growing developing economies may be the reason why the glut emerged in the first place.

This story is fundamentally different from the savings shortage and savings glut hypotheses, and it leads to dramatically different policies.

Others cite the so called capital glut large inflows of external financing from China and much of the developing world.

Neither would it have stopped the global saving glut from turning into a ticking time bomb for the world economy.

Remarks by Federal Reserve Governor Ben S. Bernanke at the Sandridge Lecture entitled The Global Saving Glut and the U.S.

Such taxes surely reduce liquidity in financial markets.

This generates liquidity, which then stimulates GDP growth.

First, the factors which allow a distinction to be made between liquidity and solvency problems are not clearly set. What determines a liquidity crisis?

The breakdown was fundamentally a liquidity crisis, and liquidity was easily restored in several ways the New York banks issued their own liquidity through a clearing house one massively powerful financial institution, J.P. Morgan, bought up collapsing shares, and thus reversed a market panic and a scramble for liquidity and European central banks supplied gold to the American market.

Ben Bernanke, the US Federal Reserve chairman, once famously pinned the whole US current account deficit on a global savings glut.

He or she should not attempt to centralize information, but rather to make it flow more smoothly. Call it information liquidity, akin to financial liquidity.

It taxes liquidity, which many believe is overly abundant.

Liquidity risk is best hedged through diversification across time.

If you believe that the crisis was caused by a shortage of liquidity, we had plenty of models analyzing liquidity shortages and their effects on financial institutions.

But there were two risks to liquidity driven asset reflation.

massive and unlimited provision of liquidity to solvent financial institutions

Subsidizing labor, by contrast, is a pure injection of liquidity.

UNICEF met its internal liquidity guideline for the year 2004.

Sometimes the RCB acted as the government s banker, providing liquidity without considering the financial markets at other times, it focused on the financial markets, providing liquidity to banks.

There is a glut of film, the quality has to be raised, they need to go to the next level, but I m optimistic.

Talk abounds of a global savings glut. In fact, the world economy suffers not from too much saving, but from too little investment.

US Federal Reserve Board Chairman Ben Bernanke s notion of a global savings glut is a commonly cited explanation for falling world interest rates.