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IS THE WORLD SHORT OF SAVINGS?
Author(s) -
Dick Geoffrey
Publication year - 1990
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1990.tb00661.x
Subject(s) - economics , scope (computer science) , modernization theory , investment (military) , shock (circulatory) , german , capital (architecture) , market economy , economic policy , economy , economic growth , politics , political science , medicine , archaeology , computer science , law , programming language , history
The opening up of Eastern Europe may give rise to a surge in investment as the former socialist economies move to a market‐based system. The scope for modernization of the region in terms of its industrial, environmental and social capital raises the question of how the increase in demand can be accommodated. Since the Ergonomic shock of the early 1980s, most of the world's net saving has been provided by Japan and West Germany in the form of huge current account surpluses. If GMU now implies a significant drop in German savings, does this mean, as the OECD has recently suggested that there is a risk that world savings will be inadequate?