There is a consensus among the majority of economists that the credit supply is limited by current household saving. If … governments or foreigners ran deficits, they would absorb this limited saving so that firms could not borrow any longer and had to … reduce their investment. This is the "Loanable Funds" theory. Ben Bernanke's "Global Saving Glut" thesis is based on this …

view (i.e., including human capital) of investment and saving. We find that the Feldstein-Horioka result is impervious to …

the aggregate consumption to income ratio. By standard intertemporal budget constraint logic, this ratio is linked to … expectations of future income and consumption growth rates. We investigate whether these expectations suffice to explain the shifts … in the consumption-income ratio that occur during disaster periods or whether, on the other hand, consumers become more …