Corden, Max.
The global imbalances are fashionably and officially perceived as a problem, especially by the US government and US economists.There have been proposals that they should be internationally regulated and, above all, reduced. These “imbalances” are national current-account surpluses and deficits offset by net capital flows between countries, including changes in foreign currency reserves. It is often stated that they are a cause – possibly even the principal cause- of the global financial crisis that began in 2008. Particular criticism is directed at surplus countries. The aim of this policy insight is to analyse these views rigorously.
Πηγή: CEPR