Columbia International Affairs Online: Policy Briefs

CIAO DATE: 01/2010

Sharing the Pain: The Global Struggle Over Savings

Michael Pettis

November 2009

Carnegie Endowment for International Peace

Abstract

Without greater global investment or a rise in Chinese domestic consumption, the increasing U.S. savings rate will have serious repercussions for both the Chinese and American economies and create aftershocks in dozens of other countries.