> Shouldn't that be higher rates encourage domestic saving? In context - going from reading the sentence to the entire paragraph - I think the proper interpret

> Shouldn't that be higher rates encourage domestic saving? In context - going from reading the sentence to the entire paragraph - I think the proper interpretation is that spending will be redirected from buying foreign goods to buying domestic goods. So to synthesise the perspectives, the budget deficits and therefore total spending decline but that is nonetheless coupled with an increase in local spending because foreigners refuse to be involved.