Now, when the United States is on the verge of a dramatic rise in potential entitlement spending, seems a particularly poor time for such a sharp drop. But national saving is a long run concept, and the fact that the U.S. rate has fallen does not inevitably make for economic problems.
These changes will not have a dramatic effect on the economy if they are introduced at a time when the foreign-currency market is not exceptionally volatile, and they will make monetary policy more efficient.