Causes and Consequences of Global Imbalances: Perspective from Developing Asia
AbstractGlobal current account imbalances are one of the key macroeconomic imbalances that underlie the global financial crisis. The central objective of this paper is to analyze the causes and consequences of global imbalances from the perspective of developing Asia. More specifically, we examine the root causes of the large and persistent current account surpluses that have emerged in the region since the Asian crisis. We also explore the consequences of global imbalances for the region, in terms of welfare and economic growth. Based on our analysis, we recommend a number of concrete policy directions to help Asia rebalance its demand and growth toward domestic sources.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 157.
Length: 31 pages
Date of creation: Apr 2009
Date of revision:
Global imbalances; current account; global financial crisis; rebalancing; Asia;
Find related papers by JEL classification:
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-OPM-2010-04-17 (Open Economy Macroeconomics)
- NEP-SEA-2010-04-17 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Park, Donghyun & Shin, Kwanho, 2009. "Saving, Investment, and Current Account Surplus in Developing Asia," ADB Economics Working Paper Series 158, Asian Development Bank.
- Sebastian Edwards, 2001.
"Does the Current Account Matter?,"
NBER Working Papers
8275, National Bureau of Economic Research, Inc.
- Chinn, Menzie D. & Ito, Hiro, 2007.
"Current account balances, financial development and institutions: Assaying the world "saving glut","
Journal of International Money and Finance,
Elsevier, vol. 26(4), pages 546-569, June.
- Menzie D. Chinn & Hiro Ito, 2005. "Current Account Balances, Financial Development and Institutions: Assaying the World "Savings Glut"," NBER Working Papers 11761, National Bureau of Economic Research, Inc.
- Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "The revived Bretton Woods system," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(4), pages 307-313.
- Willem Thorbecke, 2011.
"Transpacific Imbalances and Macroeconomic Codependency,"
Macroeconomics Working Papers
23237, East Asian Bureau of Economic Research.
- Thorbecke, Willem, 2011. "Transpacific Imbalances and Macroeconomic Codependency," ADBI Working Papers 299, Asian Development Bank Institute.
- Willem Thorbecke, 2011. "Transpacific Imbalances and Macroeconomic Codependency," Governance Working Papers 23237, East Asian Bureau of Economic Research.
- Catherine Figuière & Laëtitia Guilhot, 2010. "La Chine : avenir du découplage asiatique ?," Post-Print halshs-00456498, HAL.
- Luis Servén & Ha Nguyen, 2013. "Global Imbalances: Origins and Prospects," World Bank Research Observer, World Bank Group, vol. 28(2), pages 191-219, August.
- Prabir De & Chiranjib Neogi, 2010. "Global Financial Crisis : Implications for Trade and Industrial Restructuring in India," Trade Working Papers 23067, East Asian Bureau of Economic Research.
- Joseph Gagnon, 2012.
"Global imbalances and foreign asset expansion by developing-economy central banks,"
BIS Papers chapters,
in: Bank for International Settlements (ed.), Are central bank balance sheets in Asia too large?, volume 66, pages 168-185
Bank for International Settlements.
- Joseph E. Gagnon, 2012. "Global Imbalances and Foreign Asset Expansion by Developing Economy Central Banks," Working Paper Series WP12-5, Peterson Institute for International Economics.
- De, Prabir & Neogi, Chiranjib, 2011. "Global Financial and Economic Crisis: Implications for Trade and Industrial Restructuring in South Asia," ADBI Working Papers 294, Asian Development Bank Institute.
- Hwee Kwan Chow, 2010. "Asian TigersÃ¢â‚¬â„¢ Choices : An Overview," Trade Working Papers 21879, East Asian Bureau of Economic Research.
- Razmi, Arslan & Hernandez, Gonzalo, 2011. "Can Asia Sustain an Export-Led Growth Strategy in the Aftermath of the Global Crisis? An Empirical Exploration," ADBI Working Papers 329, Asian Development Bank Institute.
- Gonzalo Hernandez & Arslan Razmi, 2011. "Can Asia Sustain an Export-Led Growth Strategy in the Aftermath of the Global Crisis? An Empirical Exploration," UMASS Amherst Economics Working Papers 2011-29, University of Massachusetts Amherst, Department of Economics.
- Vincent C.S. Lim & Victor Pontines, 2012. "Global Imbalances: A Primer," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp86, June.
- Yiping Huang & Bijun Wang, 2011. "From the Asian Miracle to an Asian Century? Economic Transformation in the 2000s and Prospects for the 2010s," RBA Annual Conference Volume, in: Hugo Gerard & Jonathan Kearns (ed.), The Australian Economy in the 2000s Reserve Bank of Australia.
- Yan, Isabel K. & Kumhof, Michael, 2011. "Too much of a good thing? on the effects of limiting foreign reserve accumulation," MPRA Paper 35231, University Library of Munich, Germany.
- Hwee Kwan Chow, 2010.
"Asian Tigers’ Choices: An Overview,"
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Guia S. de Guzman) The email address of this maintainer does not seem to be valid anymore. Please ask Maria Guia S. de Guzman to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.