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Global Imbalances (global + imbalance)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Global imbalances , forgotten but not gone

ECONOMIC OUTLOOK, Issue 1 2009
Article first published online: 29 JAN 200
First page of article [source]

The missing dark matter in the wealth of nations and its implications for global imbalances

ECONOMIC POLICY, Issue 51 2007
Ricardo Hausmann
SUMMARY Dark matter and international imbalances Current account statistics may not be good indicators of the evolution of a country's net foreign assets and of its external position's sustainability. The value of existing assets may vary independently of current account flows, so-called ,return privileges' may allow some countries to obtain abnormal returns, and mismeasurement of FDI, unreported trade of insurance or liquidity services, and debt relief may also play a role. We analyse the relevant evidence in a large set of countries and periods, and examine measures of net foreign assets obtained by capitalizing the net investment income and then estimating the current account from the changes in this stock of foreign assets. We call dark matter the difference between our measure of net foreign assets and that measured by official statistics. We find it to be important for many countries, analyse its relationship with theoretically relevant factors, and note that the resulting perspective tends to make global net asset positions appear relatively stable. , Ricardo Hausmann and Federico Sturzenegger [source]

Global crisis and beyond: Sustainable growth trajectories for the developing world

INTERNATIONAL LABOUR REVIEW, Issue 2 2010
Jayati GHOSH
Abstract. Despite recent signs of output recovery, casual resumption of the growth model that crashed in 2008,09 will exacerbate the domestic and global imbalances that caused the crisis in the first place , to the detriment of the real economy, equitable development, and employment recovery. The model's environmental unsustainability is also evident. The author therefore argues for a broad policy agenda including reform of the international financial system, development strategies re-focused on wage-driven domestic demand and viable agriculture, fiscal promotion of greener technologies and demand patterns, and redistributive social policies to reduce inequalities and act as macroeconomic stabilizers in downturns. [source]

Has International Trade in Saving Improved US Economic Welfare?

THE ECONOMIC RECORD, Issue 2009
ANTHONY J. MAKIN
Over the past decade international policy-makers have perceived the current account deficit of the world's largest foreign borrower economy, the United States, as a threat to global economic and financial stability. Yet, by bridging the US domestic saving-investment gap, capital inflow that matched the huge US current account deficit also enabled a faster rate of domestic capital accumulation than home saving alone would have permitted. Consistent with the theory of international capital movements, this study identifies and compares the respective contributions of domestic and foreign saving to US gross domestic product per worker over the two decades prior to the onset of the US banking crisis. By revealing that foreign borrowing contributed significantly to raising US output and hence living standards over this period, it adds a new dimension to the debate about global imbalances. [source]