Stanford Economist John Taylor notes the following in his excellent WSJ op-ed:
“The BIS emphasizes
the view that international capital flows stirred up by monetary policy were a
primary factor leading to the preceding crisis and that these flows would lead
to the next one. This is in stark contrast to the "global saving glut"
hypothesis—which says that the funds pouring into the U.S. in the previous
decade originated largely from the surplus of exports over imports in emerging
market economies.”