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The Return of Saving

Author: Martin S. Feldstein, President Emeritus, National Bureau of Economic Research
May/June 2006
Foreign Affairs

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The U.S. savings rate has been falling for decades. But that downward trend will likely soon be reversed, as factors such as rising mortgage interest rates force Americans to start saving more. The change will ultimately be for the better, but in the short term it could cause serious problems for the United States and its trading partners unless they start preparing immediately.

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