Germany’s current use of its excess savings: A major inefficiency

Germany’s excess savings result from corporate, household and government savings. Since 2010, Germany’s use of its excess savings has been highly inefficient, as it has: Not led to additional investment in Germany; Not been lent to the other euro-zone countries to finance efficient investments in these countries; Been lent to the rest of the world outside the euro zone primarily in the form of bond purchases, which does little to stimulate global growth and yields low returns for German savers. The Germans should either absorb their excess savings by increasing investment in Germany , lend them to the other euro-zone countries or invest them in corporate capital in the rest of the world: anything would be better than the current situation.