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Title:The Saving Glut Explanation of Global Imbalances. The Role of Underinvestment Author(s):CORNELI, FlaviaDate:2009Type:Working PaperSeries/Number:EUI ECO; 2009/41Abstract:According to the “Saving Glut hypothesis”, global imbalances are caused by inefficiently high level of precautionary savings in .nancially underdeveloped regions, where agents have limited opportunity to diversify idiosyncratic ...