Given that a financial crisis in the capital and foreign exchange markets, caused by a sudden loss of confidence, has taken place, how are the effects transmitted to the real economy? Why must such a crisis cause a recession, or even a depression? How can such transmission to the real economy be...

"The central issue on which this paper focuses is the failure of high net savings by the "savings glut" countries to lead to fruitful investment in other countries, both in the United States and in developing countries." -- Abstract