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Should there be a coordinated response to the problem of global imbalances? Can there be one?

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  • Barry Eichengreen

Abstract

This paper analyzes the options for international policy coordination in order to redress the global imbalances. The case for policy coordination rests on a number of assumptions such as the existence of important spillover effects of national policies and a common understanding of the nature of the problem. In reality, important obstacles exist to get to effective policy coordination, including resistance from domestic interest groups and disagreement of the effectiveness of policy instruments. These obstacles can be reduced by developing a multilateral consensus on common goals and by addressing commitment problems via issuing multi-year schedules for policy adjustments.

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File URL: http://www.un.org/esa/desa/papers/2008/wp69_2008.pdf
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Bibliographic Info

Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 69.

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Length: 28 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:une:wpaper:69

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Related research

Keywords: Global imbalances; international policy coordination; international financial architecture;

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References

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Cited by:
  1. Kenc, Turalay & Dibooglu, Sel, 2010. "The 2007-2009 financial crisis, global imbalances and capital flows: Implications for reform," Economic Systems, Elsevier, vol. 34(1), pages 3-21, March.

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