An unprecedented configuration in Germany: All economic agents are saving too much

We see that the excess savings of one category of economic agents in a country is counterbalanced by dissaving of another category of economic agents. In Japan , for example , the fiscal deficit offsets companies’ excess savings; in France, the fiscal deficit offsets households’ excess savings. But Germany is in a very different situation: all economic agents have excess savings. At the same time, there is a fiscal surplus, profits exceed companies’ investment requirements and household savings are rising sharply. This configuration probably shows a major lack of confidence in the future in Germany.