As a result, it has been possible to sustain robust demand growth in the US. This has been supported by significant fiscal and monetary stimuli. The resulting configuration has been referred to as “global macroeconomic co-dependency” (Catherine Mann, 2005). To that extent, the “global savings glut” argument is tight-knit to the Bretton Woods II hypothesis.
Once the extraordinary needs connected to the pandemic were over and the supervisory authorities’ recommendations on dividends and share buy-backs had been lifted, the extraordinary distributions of profits referring to 2019-2020 conducted by some banks since last October have not had a significant impact on their capital adequacy.