Abstract:

The problem of an overabundance of savings in the world is exacerbated by increasing inequality in income and wealth. Incomes are restributed from labour to capital: from those with a higher marginal propensity to spend, to those with a higher marginal propensity to save. An important stage in the development of the global economy is characterized by the refinement of theoretical coherence, the growth of contradictions, the emergence of new global problems, and the strengthening of the interdependence of all participants in the global economic system.   This study examines the theoretical aspects of the functioning of the modern economy: finance, savings and the capital market, assesses in the world its structure, and presents an international financial system. The painful process o reducing debt burden leads to the need to reduce private and state spending, especially investment and increase in savings.