The origin of the global savings-investment equilibrium prior to the coronavirus crisis

The global savings-investment equilibrium is observed ex post , but this equilibrium and the trend in real interest rates provide information on the characteristics of the ex-ante savings-investment equilibrium: The global private savings rate has risen since 2010, which stems from the United States, China and oil-producing countries; The global fiscal deficit has risen considerably since 2009; Since 2010, the global private investment rate has risen slightly; housing investment has fallen; and non-housing (corporate) investment has risen considerably. The key takeaway is that the excess savings have been absorbed by increase s in fiscal deficits and in corporate investment.