Global Saving Glut, Monetary Policy, and Housing Bubble: Further Evidence

Recently, a heated debate has emerged in the economic literature, focusing on the major factors driving the global financial crisis. Among the many theories proposed, the global saving glut hypothesis is widely received, yet highly controversial. This paper provides evidence to further assess the validity of the global saving glut assumption. According to the empirical and historical evidence produced in the study, it is difficult to accept the arguments that external factors played a decisive role of causing the financial crisis in the core of the global capitalism.