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pension reforms led to an increase in the household savings rate in Germany until about 2010. As domestic investment … opportunities could not absorb these additional savings, they were partly invested abroad. The German current account-to-GDP ratio … rose. After 2010, private savings remained rather stable, but opportunities to invest in Germany declined further. Our …
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Relations between national public and private savings, domestic investment, and the current account are analyzed with … of aggregate savings on investment is found and government deficits tend to increase current account imbalances … literature. The results from the two approaches are rather different. The simulation results indicate that private savings …
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global financial crisis, and that of Germany has proven more persistent as domestic investment has remained subdued …
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