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The Global Imbalances: What Is The Problem?

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  • Max Corden

Abstract

In the 2007 Wincott Lecture the author argues that global current account imbalances are an indication of ‘intertemporal trade’. Savings and investment, both private and public, determine the imbalances. He expounds Richard Cooper's argument that it is perfectly natural for the USA to have a big deficit and suggests that the large Chinese surplus may be temporary.

Suggested Citation

  • Max Corden, 2008. "The Global Imbalances: What Is The Problem?," Economic Affairs, Wiley Blackwell, vol. 28(2), pages 53-58, June.
    • Handle: RePEc:bla:ecaffa:v:28:y:2008:i:2:p:53-58
    DOI: 10.1111/j.1468-0270.2008.00824.x
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    References listed on IDEAS

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    1. repec:fip:fedgsq:y:2005:i:mar10 is not listed on IDEAS
    2. Edwards, Sebastian, 2006. "The U.S. current account deficit: Gradual correction or abrupt adjustment?," Journal of Policy Modeling, Elsevier, vol. 28(6), pages 629-643, September.
    3. Frankel, Jeffrey, 2006. "Could the twin deficits jeopardize US hegemony?," Journal of Policy Modeling, Elsevier, vol. 28(6), pages 653-663, September.
    4. William R. Cline, 2005. "United States as a Debtor Nation, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 3993, October.
    5. Ben S. Bernanke, 2005. "The global saving glut and the U.S. current account deficit," Speech 77, Board of Governors of the Federal Reserve System (U.S.).
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