Global Imbalances Before and After
            the Global Crisis

Servén, Luis; Nguyen, Ha

dc.creator	Servén, Luis
dc.creator	Nguyen, Ha
dc.date	2012-03-19T18:40:43Z
dc.date	2012-03-19T18:40:43Z
dc.date	2010-06-01
dc.date.accessioned	2023-02-17T21:04:31Z
dc.date.available	2023-02-17T21:04:31Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100629131919
dc.identifier	http://hdl.handle.net/10986/3839
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244803
dc.description	This paper surveys the academic and policy debate on the roots of global imbalances, their role in the inception of the global crisis, and their prospects in its aftermath. The conventional view holds that global imbalances result primarily from unsustainably high demand for goods in the United States and other rich countries, and that their impending correction must involve major United States trade adjustment and dollar depreciation -- although recent literature argues that their extent may be dampened by financial adjustment effects. In contrast, an alternative view portrays global imbalances as the equilibrium result of asymmetries in world asset demand and supply. Absent changes in the deep determinants of these, global imbalances can persist. International capital flow patterns before and during the crisis lend support to the equilibrium view. The paper also examines different hypotheses proposed in the literature on the role of global imbalances in the generation and propagation of the financial crisis. On the whole, the evidence suggests that global imbalances were not among the major causes of the crisis. Lastly, the paper assesses alternative scenarios about the future of global imbalances, considering in particular their potential consequences for developing countries, and the policy measures that these might adopt to enhance their growth prospects in a changing global equilibrium.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5354
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ADVANCED ECONOMIES
dc.subject	ASSET HOLDINGS
dc.subject	ASSET PRICE
dc.subject	ASSET PRICES
dc.subject	ASSETS
dc.subject	BANK DEPOSITS
dc.subject	BOND MARKETS
dc.subject	BONDS
dc.subject	BORROWER
dc.subject	BUDGET CONSTRAINT
dc.subject	CAPITAL ACCOUNT
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL GAINS
dc.subject	CAPITAL INFLOW
dc.subject	CAPITAL INFLOWS
dc.subject	CAPITAL LOSSES
dc.subject	CAPITAL OUTFLOWS
dc.subject	CENTRAL BANKS
dc.subject	COMMERCIAL PAPER
dc.subject	COMMODITY PRICES
dc.subject	COMPETITIVE EXCHANGE RATES
dc.subject	CONSUMER CREDIT
dc.subject	CONSUMER EXPENDITURE
dc.subject	CORPORATE BOND
dc.subject	CORPORATE BOND MARKETS
dc.subject	CORPORATE DEBT
dc.subject	CORPORATE GOVERNANCE
dc.subject	CORPORATE SAVING
dc.subject	CREDIT GROWTH
dc.subject	CREDITOR
dc.subject	CURRENT ACCOUNT
dc.subject	CURRENT ACCOUNT BALANCE
dc.subject	CURRENT ACCOUNT BALANCES
dc.subject	CURRENT ACCOUNT DEFICIT
dc.subject	CURRENT ACCOUNT DEFICITS
dc.subject	CURRENT ACCOUNT IMBALANCES
dc.subject	CURRENT ACCOUNT POSITION
dc.subject	CURRENT ACCOUNT SURPLUS
dc.subject	CURRENT ACCOUNT SURPLUSES
dc.subject	DEBT INSTRUMENTS
dc.subject	DEBTOR
dc.subject	DEBTORS
dc.subject	DEBTS
dc.subject	DEFAULTS
dc.subject	DEMAND GROWTH
dc.subject	DEPOSITS
dc.subject	DEPRECIATION
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING COUNTRY
dc.subject	DIRECT INVESTMENT
dc.subject	DISTORTIONS
dc.subject	DOMESTIC CONSUMPTION
dc.subject	DOMESTIC DEMAND
dc.subject	DOMESTIC MARKETS
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC POLICY
dc.subject	ECONOMIC STABILITY
dc.subject	EMERGING ECONOMIES
dc.subject	EMERGING MARKET COUNTRIES
dc.subject	EMERGING MARKETS
dc.subject	EQUILIBRIUM
dc.subject	EQUITIES
dc.subject	EQUITY MARKETS
dc.subject	EXCHANGE RATE
dc.subject	EXCHANGE RATE APPRECIATION
dc.subject	EXCHANGE RATE POLICY
dc.subject	EXPENDITURES
dc.subject	EXPORT MARKET
dc.subject	EXPROPRIATION
dc.subject	EXPROPRIATION RISKS
dc.subject	EXTERNAL ASSET
dc.subject	EXTERNAL ASSETS
dc.subject	EXTERNAL DEFICIT
dc.subject	EXTERNAL DEFICITS
dc.subject	EXTERNAL POSITION
dc.subject	EXTERNAL POSITIONS
dc.subject	EXTERNAL SHOCKS
dc.subject	FEDERAL RESERVE
dc.subject	FEDERAL RESERVE BANK
dc.subject	FEDERAL RESERVE SYSTEM
dc.subject	FINANCES
dc.subject	FINANCIAL ASSETS
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INSTRUMENTS
dc.subject	FINANCIAL INTERMEDIATION
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL SYSTEMS
dc.subject	FISCAL POLICY
dc.subject	FISCAL REFORM
dc.subject	FOREIGN ASSET
dc.subject	FOREIGN ASSET ACCUMULATION
dc.subject	FOREIGN ASSET POSITION
dc.subject	FOREIGN ASSETS
dc.subject	FOREIGN CURRENCY
dc.subject	FOREIGN EXCHANGE
dc.subject	FOREIGN EXCHANGE RESERVES
dc.subject	FOREIGN INVESTORS
dc.subject	FOREIGN RESERVE
dc.subject	GLOBAL BANKS
dc.subject	GLOBAL DEMAND
dc.subject	GLOBAL ECONOMY
dc.subject	GLOBAL FINANCIAL SYSTEM
dc.subject	GLOBAL IMBALANCE
dc.subject	GLOBAL IMBALANCES
dc.subject	GROWTH RATE
dc.subject	HOUSEHOLD SAVING
dc.subject	IMBALANCE
dc.subject	IMPORT
dc.subject	IMPORT DEMAND
dc.subject	IMPORTS
dc.subject	INFLOW OF CAPITAL
dc.subject	INSURANCE
dc.subject	INTANGIBLE
dc.subject	INTANGIBLE ASSETS
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL CAPITAL
dc.subject	INTERNATIONAL CAPITAL FLOW
dc.subject	INTERNATIONAL CAPITAL FLOWS
dc.subject	INTERNATIONAL DIVERSIFICATION
dc.subject	INTERNATIONAL ECONOMICS
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL FINANCIAL INTEGRATION
dc.subject	INTERNATIONAL FINANCIAL STATISTICS
dc.subject	INTERNATIONAL INVESTORS
dc.subject	INTERNATIONAL MONETARY SYSTEM
dc.subject	INTERNATIONAL RESERVES
dc.subject	INVESTMENT OPPORTUNITIES
dc.subject	INVESTMENT PORTFOLIOS
dc.subject	INVESTMENT PROJECTS
dc.subject	INVESTMENT RATES
dc.subject	INVESTOR AWARENESS
dc.subject	LENDER
dc.subject	LEVERAGE
dc.subject	LIABILITY
dc.subject	LIQUIDATION
dc.subject	LIQUIDITY
dc.subject	MACROECONOMIC POLICIES
dc.subject	MACROECONOMIC STABILITY
dc.subject	MONETARY ECONOMICS
dc.subject	MONETARY POLICY
dc.subject	OIL EXPORTERS
dc.subject	OIL EXPORTING COUNTRIES
dc.subject	OIL PRICE
dc.subject	OIL PRICES
dc.subject	OIL-EXPORTING COUNTRIES
dc.subject	OPEN ECONOMIES
dc.subject	OPPORTUNITY COSTS
dc.subject	OTHER CURRENCIES
dc.subject	PENSION
dc.subject	POLICY RESPONSES
dc.subject	POLITICAL ECONOMY
dc.subject	PORTFOLIO
dc.subject	PORTFOLIO DIVERSIFICATION
dc.subject	PORTFOLIOS
dc.subject	POSSIBILITY OF DEFAULT
dc.subject	PRICE CHANGES
dc.subject	PRICE MOVEMENTS
dc.subject	PRIVATE CAPITAL
dc.subject	PRIVATE INFLOWS
dc.subject	PRIVATE INVESTMENT
dc.subject	PRIVATE INVESTORS
dc.subject	PRIVATE SAVING
dc.subject	PRUDENTIAL REGULATION
dc.subject	PUBLIC DEBT
dc.subject	PUBLIC DEFICITS
dc.subject	PUBLIC SAVING
dc.subject	PUBLIC SPENDING
dc.subject	REAL DEPRECIATION
dc.subject	REAL EFFECTIVE EXCHANGE RATE
dc.subject	REAL EXCHANGE RATE
dc.subject	REAL EXCHANGE RATES
dc.subject	REAL INTEREST
dc.subject	REAL INTEREST RATE
dc.subject	REAL INTEREST RATES
dc.subject	RELATIVE WEIGHT
dc.subject	RESERVE ACCUMULATION
dc.subject	RESERVE CURRENCY
dc.subject	RESERVE HOLDINGS
dc.subject	RETURN
dc.subject	RETURNS
dc.subject	RISK DIVERSIFICATION
dc.subject	RISKY ASSETS
dc.subject	SAFETY NET
dc.subject	SAFETY NETS
dc.subject	SECURITIES
dc.subject	SHAREHOLDERS
dc.subject	SLACK
dc.subject	SLOWDOWN
dc.subject	SOURCE OF INFLOWS
dc.subject	STOCK MARKET
dc.subject	STOCK MARKET PRICES
dc.subject	STOCKS
dc.subject	SURPLUS
dc.subject	SURPLUS COUNTRIES
dc.subject	SURPLUSES
dc.subject	TAX
dc.subject	TAX INCENTIVES
dc.subject	TRADABLE GOODS
dc.subject	TRADE ACCOUNT
dc.subject	TRADE BALANCE
dc.subject	TRADE SURPLUS
dc.subject	TREASURIES
dc.subject	TREASURY
dc.subject	WEALTH EFFECTS
dc.subject	WEALTH TRANSFER
dc.subject	WITHDRAWAL
dc.subject	WORLD DEVELOPMENT INDICATORS
dc.subject	WORLD ECONOMY
dc.subject	WORLD INTEREST RATES
dc.subject	WORLD MARKETS
dc.subject	WORLD TRADE
dc.title	Global Imbalances Before and After the Global Crisis
dc.type	Publications & Research :: Policy Research Working Paper