IDEAS home Printed from https://ideas.repec.org/a/bla/ecaffa/v28y2008i2p53-58.html

The Global Imbalances: What Is The Problem?

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0270.2008.00824.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0270.2008.00824.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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, July.
    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.).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krittika Banerjee & Ashima Goyal, 2021. "Current account imbalances: Exploring role of domestic and external factors for large emerging markets," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-001, Indira Gandhi Institute of Development Research, Mumbai, India.
    2. W. Max Corden, 2007. "Those Current Account Imbalances: A Sceptical View1," The World Economy, Wiley Blackwell, vol. 30(3), pages 363-382, March.
    3. Arslan, Yavuz & Kılınç, Mustafa & Turhan, M. İbrahim, 2015. "Global imbalances, current account rebalancing and exchange rate adjustments," Journal of Policy Modeling, Elsevier, vol. 37(2), pages 324-341.
    4. Ricardo J. Caballero & Emmanuel Farhi & Pierre-Olivier Gourinchas, 2008. "An Equilibrium Model of "Global Imbalances" and Low Interest Rates," American Economic Review, American Economic Association, vol. 98(1), pages 358-393, March.
    5. Michael G. Plummer, 2012. "Regional Monitoring of Capital Flows and Coordination of Financial Regulation: Stakes and Options for Asia," Chapters, in: Masahiro Kawai & David G. Mayes & Peter Morgan (ed.), Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia, chapter 8, Edward Elgar Publishing.
    6. Peter Aradvanyi & Zoltan Szalai, 2025. "Endogenous Money Supply Theories and Their Main Implications," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 24(1), pages 74-100.
    7. Sebastiaan Pool, 2018. "Mortgage debt and shadow banks," DNB Working Papers 588, Netherlands Central Bank, Research Department.
    8. Maria V. Sokolova, 2016. "Trade Re(Im)Balanced: The Role of Regional Trade Agreements," IHEID Working Papers 06-2016, Economics Section, The Graduate Institute of International Studies.
    9. Chen, Qiuyu & Feng, Ling & Li, Zhiyuan & Lin, Ching-Yi, 2021. "Housing prices and trade surpluses in China: An inter-temporal approach," Journal of International Money and Finance, Elsevier, vol. 110(C).
    10. Carmen M. Reinhart & Takeshi Tashiro, . "Crowding out redefined: the role of reserve accumulation," Proceedings, Federal Reserve Bank of San Francisco.
    11. Fratianni, Michele & Giri, Federico, 2017. "The tale of two great crises," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 5-31.
    12. Andrew Hughes Hallett & Juan Martinez Oliva, 2012. "Reducing Global Imbalances: Can Fixed Exchange Rates and Current Account Limits Help?," Open Economies Review, Springer, vol. 23(1), pages 163-192, February.
    13. Neri, Stefano & Gerali, Andrea, 2019. "Natural rates across the Atlantic," Journal of Macroeconomics, Elsevier, vol. 62(C).
    14. Mounoufie Valery KOFFI & Moro Jean-Pierre EBY & Dago Okoubi Arthur YAO, 2025. "Relationship Between Macroeconomic instability and current account in WAEMU countries," Bulletin of Applied Economics, Risk Market Journals, vol. 12(2), pages 165-174.
    15. Can Xu & Jan P. A. M. Jacobs & Jakob de Haan, 2023. "Does Household Borrowing Reduce the Trade Balance? Evidence from Developing and Developed Countries," Open Economies Review, Springer, vol. 34(4), pages 759-787, September.
    16. Hur, Sewon & Kondo, Illenin O., 2016. "A theory of rollover risk, sudden stops, and foreign reserves," Journal of International Economics, Elsevier, vol. 103(C), pages 44-63.
    17. Broner, Fernando & Didier, Tatiana & Schmukler, Sergio L. & von Peter, Goetz, 2023. "Bilateral international investments: The big sur?," Journal of International Economics, Elsevier, vol. 145(C).
    18. Reinhart, Carmen M. & Reinhart, Vincent & Rogoff, Kenneth, 2015. "Dealing with debt," Journal of International Economics, Elsevier, vol. 96(S1), pages 43-55.
    19. M'bakob, Gilles Brice & Tchounga, Anatole, 2024. "CBDC and banking stability: Modeling cascading effects on reserves, lending, and liquidity," Research in Economics, Elsevier, vol. 78(4).
    20. Cubizol, Damien, 2018. "Transition and capital misallocation: the Chinese case," Journal of International Money and Finance, Elsevier, vol. 81(C), pages 88-115.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecaffa:v:28:y:2008:i:2:p:53-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0265-0665 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.