Global Savings Glut’s Demise Threatens Higher Borrowing Costs
- Aging populations, economic fragmentation to push yields up
- Draghi sees reversal of era of falling global interest rates
In 2005, Bernanke argued the world was awash with savings because China and other emerging markets were deliberately building up foreign-currency reserves as insurance against future financial crises.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Ben Bernanke’s global savings glut is drying up. Long-term interest rates worldwide may be heading higher as a result.
Aging populations, an embattled Chinese economy and an increasingly fragmented global one are among the factors threatening to turn the surplus of savings the former Federal Reserve chair identified almost 20 years ago into a shortfall.