Back to Global Imbalances?

The 2008-2009 financial crisis has shaken the prevailing equilibrium of the global economy, with a collapse in capital flows and international trade. How will the post-crisis constellation of current account imbalances look? Will the world resume financing the United States (US), and continue sustaining large external imbalances there? Contrary to what many expected, some forces unleashed by the crisis have kept US assets attractive and the dollar strong, decreasing the need for an immediate reduction of global imbalances. Over the long run, however, real sector and financial sector forces are likely to impose a correction, perhaps involving a depreciation of the dollar and a major reallocation of international portfolios.

Bibliographic Details

Main Authors:	de la Torre, Augusto, Schmukler, Sergio L., Servén, Luis
Format:	Brief biblioteca
Language:	English
Published:	World Bank, Washington, DC 2009-07
Subjects:	ADVANCED ECONOMIES, AGGREGATE DEMAND, APR, ASSET HOLDINGS, ASSET PRICES, ASSET VALUES, ASSETS, BALANCE SHEET, BANK BONDS, BANK DEPOSITS, BOND PRICES, BORROWER, BUFFERS, CAPITAL FLOWS, CAPITAL INFLOWS, COMMODITY, COMMODITY PRICES, CORPORATE BONDS, CREDIT FACILITIES, CREDIT RISK, CREDITOR, CREDITWORTHINESS, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, CURRENT ACCOUNT DEFICITS, CURRENT ACCOUNT IMBALANCES, DEPOSITS, DEPRECIATION, DEVALUATION, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DIFFERENT CURRENCIES, DOWNWARD PRESSURE, DURABLE, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET BONDS, EMERGING MARKETS, EQUILIBRIUM, EXCHANGE RATE, EXCHANGE RATES, EXPANSIONARY POLICIES, EXPORTERS, EXPORTS, FEDERAL RESERVE, FEDERAL RESERVE SYSTEM, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL SECTOR, FOREIGN ASSET, FOREIGN ASSET ACCUMULATION, FOREIGN ASSET POSITIONS, FOREIGN ASSETS, FOREIGN CAPITAL, FOREIGN EXCHANGE, FOREIGN INVESTORS, FOREIGN LENDERS, FOREIGN STOCKS, GDP, GLOBAL CURRENT ACCOUNT IMBALANCES, GLOBAL ECONOMY, GLOBAL IMBALANCES, GLOBAL TRADE, GOVERNMENT ACTIONS, GOVERNMENT BOND, HOLDINGS, INDUSTRIAL COUNTRIES, INFLATION, INSURANCE, INTEREST RATES, INTERNATIONAL INVESTORS, INTERNATIONAL MONETARY SYSTEM, INTERNATIONAL PORTFOLIOS, INTERNATIONAL TRADE, LENDER, LENDER OF LAST RESORT, MARKET HOLDINGS, MONEY MARKET, MONEY MARKET FUNDS, NET DEBT, PORTFOLIO, PRIVATE CONSUMPTION, REAL ESTATE, REAL EXCHANGE RATE, RESERVE CURRENCIES, RESERVE CURRENCY, RESERVES, RETURN, RISK AVERSION, RISKY ASSETS, SAFETY NETS, SAVINGS, SAVINGS RATES, SECURITIES, STOCK PRICES, STOCKS, SURPLUS, SURPLUS COUNTRIES, T-BILLS, TRADE SURPLUSES, TRADING, TRADING PARTNERS, TREASURY, UNDERDEVELOPED COUNTRIES, WEAK ASSET, WEALTH, WEALTH EFFECT, WORLD ECONOMY,
Online Access:	http://documents.worldbank.org/curated/en/2009/07/11953770/back-global-imbalances http://hdl.handle.net/10986/10976
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