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Brad Setser said China should increase borrowing and use it more efficiently to support consumption and bolster nominal GDP growth.
Setser also commented that many people misunderstand economies with high savings rates, noting that a country saving 40% of its GDP will either run large external surpluses or face challenges.
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Setser has previously highlighted shifts in U.S. gold flows, noting that imports of gold bars surged in Q1 2025. He has also observed sharp swings in trade involving gold and pharmaceuticals tied to anticipated tariffs that were not implemented. These observations address broader patterns in trade and policy responses.