11. Godsoe remains confident, citing recent policy reforms, reduced government intervention, increased domestic savings and a vastly under-banked market. 12. If Adler is right, then domestic savings, rather than cushioning domestic investment from the volatility of international capital flows, may actually exacerbate volatility. 13. If the nation can fund its economic development from domestic savings, Mexico can reduce its interest rates and boost economic development, Zedillo said. 14. In fact, most were running budget surpluses, had high domestic savings rates and had little inflation. 15. In the long run, the economy needs domestic savings to fund new investment. 16. Inflation would be controlled by stimulating domestic savings. 17. It may also hurt President Ernesto Zedillo strategy to promote economic development by boosting domestic savings. 18. It plans to do so by fostering domestic savings, using foreign resources and modernizing its financial system, officials said. 19. Its emphasis is on financing growth by building domestic savings and encouraging direct foreign investment. 20. Separately, the government introduced its bill in Congress Thursday to reform the pension system and promote development by increasing domestic savings. |