Savings in Asia

Savings in Asia - James Meiners Asian Trade Imbalance The...

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James Meiners Asian Trade Imbalance The recession that started in 2007 in the United States that quickly spread around the world was fueled by a convergence of several factors. One of these dangerous conditions was easy credit. The easy credit conditions for American consumers grew the housing bubble. The easy credit was caused by a large trade imbalance, which brought lots of foreign capital into the United States. The main causes for the large trade imbalances were the surplus that grew in many countries in the early 2000, many of which were in Asia. The article in The Economist describes this situation and proposes a solution for the situation. The author believes that the best way to fix the situation that exists in Asia is to increase investment but keep consumption levels where they are. The article describes how, during the Asian crisis in 1997 and 1998, investment plummeted in these countries, which include most of Asia except China and India. The author says that saving rates have not changed
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This note was uploaded on 04/18/2011 for the course ECON 312 taught by Professor Rapach during the Spring '08 term at Saint Louis.

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Savings in Asia - James Meiners Asian Trade Imbalance The...

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