Global imbalances: an unconventional view
AbstractMaintaining today’s global imbalances would help to overcome the major disproportion of our times – income gap between developed and developing countries. This gap was widening for 500 years and only now, in the recent 50 years, there are some signs that this gap is starting to decrease. The chances to close this gap sooner rather than later would be better, if the West would go into debt, allowing developing countries to have trade surpluses that would help them develop faster. Previously, in 16-20th century, it was the West that was developing faster, accumulating surpluses in trade with “the rest” and using these surpluses to buy assets in developing countries, while “the rest” were going into debt. Now it is time for “the rest” to accumulate assets and for the West to go into debt.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28110.
Date of creation: May 2010
Date of revision:
Global imbalances; China; USA; economic growth; acumulation of foreign exchange reserves; debt;
Other versions of this item:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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