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consumption, and rising share of savings and investment in China. However, in the context of a globalized world economy, the … contradiction is "resolved" through a recycling of the "excess savings" from China to the U.S. adding to the debt and asset bubble …
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This paper examines the relationship between aggregate consumer spending and credit availability in the United States. The author finds that consumer spending falls (rises) in response to a reduction (increase) in credit availability. Moreover, she provides a formal assessment of the possibility...
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