4. In 2005, Federal Reserve governor (and later chairman) Ben Bernanke said in a speech:

“Over the past decade a combination of diverse forces has created a significant increase in the global supply of saving—a global saving glut—

which helps to explain both the increase in the U.S. current account deficit [a broad measure of the trade deficit] and the relatively low level of long-term real interest rates in the world today.”

Is this statement consistent with the models you have learned? Explain.