Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Savings Glut
In episode 129 of Monetary Policy Explained with Fexingo, Lucas and Luna explore why central banks are fixated on the global savings glut — and how it's distorting interest rates, inflation targets, and policy transmission. Using the post-pandemic savings surge as a case study, they explain why excess household liquidity makes rate hikes less effective and why central banks like the Federal Reserve are now tracking savings rates as a leading indicator. The episode dives into data from the U.S. Bureau of Economic Analysis showing that the personal saving rate spiked to 12.3% in 2022 and…
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