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External imbalances and macroeconomic policy

  • Philip R. Lane

This paper argues that large external imbalances pose significant macroeconomic risks. While New Zealand has coped well in recent years, the global financial crisis has underlined the vulnerability of large-deficit countries to financial shocks. We analyse how the macroeconomic policy framework can be adapted to modify the risks embedded in the international balance sheet.

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File URL: http://hdl.handle.net/10.1080/00779954.2012.720525
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Article provided by Taylor & Francis Journals in its journal New Zealand Economic Papers.

Volume (Year): 47 (2013)
Issue (Month): 1 (April)
Pages: 53-70

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Handle: RePEc:taf:nzecpp:vv:47:y:2013:i:1:p:53-70
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