The investment behaviour of German savings is incomprehensible

Germany is currently investing its excess savings in the rest of the world, outside the euro zone. This German savings investment behaviour began with the euro-zone crisis (2010-2013) and showed German savers’ lack of confidence in borrower solvency in the rest of the euro zone. But this behaviour by the Germans is irrational: the return on their assets abroad is low , while they could obtain a far higher return if they invested in companies in the other euro-zone countries, which, moreover, would be very positive for euro-zone growth.