Global Imbalances : Origins and Prospects

This paper surveys the academic and policy debate on the origins of global imbalances, their prospects after the global crisis, and their policy implications. A conventional view of global imbalances considers them to primarily result from macroeconomic policies and cyclical forces that cause demand...

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Main Authors:	Servén, Luis, Nguyen, Ha
Format:	Journal Article
Language:	en_US
Published:	Published by Oxford University Press on behalf of the World Bank 2015
Subjects:	asset markets capital flows current account economic stability financial crisis global economy global imbalances Gold Standard macroeconomic policy market forces oil-exporting countries
Online Access:	http://hdl.handle.net/10986/21429

id	okr-10986-21429
recordtype	oai_dc
spelling	okr-10986-214292021-04-23T14:04:02Z Global Imbalances : Origins and Prospects Servén, Luis Nguyen, Ha asset markets capital flows current account economic stability financial crisis global economy global imbalances Gold Standard macroeconomic policy market forces oil-exporting countries This paper surveys the academic and policy debate on the origins of global imbalances, their prospects after the global crisis, and their policy implications. A conventional view of global imbalances considers them to primarily result from macroeconomic policies and cyclical forces that cause demand for goods to outstrip supply in the United States and other rich countries and that have the opposite effect in major emerging markets. An alternative view holds that global imbalances are the result of structural distortions and slow-changing factors that primarily affect assets markets. This paper reviews the analytical underpinnings of these two perspectives and the empirical evidence of their respective merits. The paper then assesses the outlook for global imbalances after the crisis, particularly in terms of policy action to reduce their magnitude. Policy intervention is warranted to the extent that the imbalances are driven by welfare-reducing distortions, but in this case, the primary target of policy intervention should be the distortions rather than the imbalances. Finally, the paper examines various forms of international spillovers that may call for multilateral action to limit global imbalances. 2015-02-11T22:16:43Z 2015-02-11T22:16:43Z 2013-08-01 Journal Article World Bank Research Observer 1564-6971 http://hdl.handle.net/10986/21429 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	asset markets capital flows current account economic stability financial crisis global economy global imbalances Gold Standard macroeconomic policy market forces oil-exporting countries
spellingShingle	asset markets capital flows current account economic stability financial crisis global economy global imbalances Gold Standard macroeconomic policy market forces oil-exporting countries Servén, Luis Nguyen, Ha Global Imbalances : Origins and Prospects
description	This paper surveys the academic and policy debate on the origins of global imbalances, their prospects after the global crisis, and their policy implications. A conventional view of global imbalances considers them to primarily result from macroeconomic policies and cyclical forces that cause demand for goods to outstrip supply in the United States and other rich countries and that have the opposite effect in major emerging markets. An alternative view holds that global imbalances are the result of structural distortions and slow-changing factors that primarily affect assets markets. This paper reviews the analytical underpinnings of these two perspectives and the empirical evidence of their respective merits. The paper then assesses the outlook for global imbalances after the crisis, particularly in terms of policy action to reduce their magnitude. Policy intervention is warranted to the extent that the imbalances are driven by welfare-reducing distortions, but in this case, the primary target of policy intervention should be the distortions rather than the imbalances. Finally, the paper examines various forms of international spillovers that may call for multilateral action to limit global imbalances.
format	Journal Article
author	Servén, Luis Nguyen, Ha
author_facet	Servén, Luis Nguyen, Ha
author_sort	Servén, Luis
title	Global Imbalances : Origins and Prospects
title_short	Global Imbalances : Origins and Prospects
title_full	Global Imbalances : Origins and Prospects
title_fullStr	Global Imbalances : Origins and Prospects
title_full_unstemmed	Global Imbalances : Origins and Prospects
title_sort	global imbalances : origins and prospects
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2015
url	http://hdl.handle.net/10986/21429
_version_	1764448236590858240

Global Imbalances : Origins and Prospects

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