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External imbalances and macroeconomic policy

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  • Philip R. Lane

Abstract

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.

Suggested Citation

  • Philip R. Lane, 2013. "External imbalances and macroeconomic policy," New Zealand Economic Papers, Taylor & Francis Journals, vol. 47(1), pages 53-70, April.
    • Handle: RePEc:taf:nzecpp:vv:47:y:2013:i:1:p:53-70
    DOI: 10.1080/00779954.2012.720525
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    References listed on IDEAS

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    Cited by:

    1. Gani, Azmat & Scrimgeour, Frank, 2016. "New Zealand's trade with Asia and the role of good governance," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 36-53.
    2. Robert A Buckle & Amy A Cruickshank, 2013. "The Requirements for Long-Run Fiscal Sustainability," Treasury Working Paper Series 13/20, New Zealand Treasury.
    3. Philip R. Lane, 2016. "Macro-financial stability under EMU," ESRB Working Paper Series 01, European Systemic Risk Board.
    4. Philip R. Lane, 2013. "Cross-Border Financial Integration in Asia and the Macro-Financial Policy Framework," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 14(2), pages 37-52, April.
    5. Lane, Philip R., 2015. "Macro-Financial Stability under EMU," CEPR Discussion Papers 10776, C.E.P.R. Discussion Papers.

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