Chapter IV. Awash With Cash: Why are Corporate Savings So High?
- International Monetary Fund. Research Dept.
- Published Date:
- September 2005
Companies, which normally borrow other folks’ savings in order to invest, have turned thrifty. Even companies enjoying strong profits and cash flow are building cash hoards, reducing debt and buying back their own shares—instead of making investment bets.
—David Wessel, Wall Street Journal, July 21, 2005