Susan M. Collins is a senior fellow in Economic Studies at the Brookings Institution and a professor of economics at Georgetown University. Her publications focus on various dimensions of economic policy and performance for developing countries. Barry Bosworth is a senior fellow and Robert V. Roosa Chair in International Economics at the Brookings Institution. Miguel A. Soto-Class is the executive director of the Center for the New Economy, a Puerto Rico-based think tank focusing on economic development issues.
The Decline in Saving provides an extensive and unparalleled account of the complexity of present saving patterns, an issue made even more serious by the 2008–09 global economic and financial crises. It objectively examines saving at both the individual household and the aggregate economy levels to understand whether the U.S. decline in saving is truly a threat to American prosperity.
Highlights from The Decline in Saving:
"The magnitude of the two-decade-long fall in household saving has been truly astonishing; it is even more surprising in view of the fact that the large cohort of baby boomers should have been in their peak saving years."
"If Americans save so little, why are they so rich? This divergence emerges because the conventional measure of saving excludes all forms of capital gains...."
"Saving behavior appears to be influenced in important ways by country-specific institutional factors along with a few common determinants, such as income growth, demographic changes, and variations in private wealth."
"In the aggregate, the United States has had a negative net national saving rate since the onset of the financial crisis, and it now relies on foreign resource inflows to finance all its capital accumulation and a portion of its consumption."
"The optimistic projections of just a few years ago about the future well-being of retirees now seem seriously dated."
While the magnitude of global-trade disruption led to some reduction in the size of the imbalances, closer examination suggests that the progress may prove temporary. On the other hand, significant changes in the underlying patterns of saving and investment suggest that some of the recent rebalancing may prove to be more permanent. Are such imbalances really a problem? If so, why and for whom? What should be done about them—if anything—and what does the future likely hold for transpacific trade relations? In this timely book, Asian and American economists explore those important questions.
Copublished with the Asian Development Bank Institute, Transpacific Rebalancing is coedited by Barry Bosworth—long one of the Brookings Institution's leading economic analysts—and Masahiro Kawai, dean of the ADBI. They brought together leading economists from either side of the Pacific to analyze such issues as:
• The impact of exchange rates
• The policy choices facing the "Asian tigers"
• The specifics and effects of trade imbalances in specific countries including the United States, South Korea, Thailand, India, and China
Contributors include Hwee Kwan Chow, Susan M. Collins, Barry Eichengreen, Joonkyung Ha, Yping Huang, Ginalyn Komoto, Jong-Wha Lee, Rajiv Kumar, Deunden Nikomborirak, Gisela Rua, Lea Sumulong, Chalongphob Sussankam, Kunyu Tao, Willem Thorbecke, and Pankaj Vashisht.