IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-23665-3_10.html
   My bibliography  Save this book chapter

Global Imbalances

In: Designing the European Model

Author

Listed:
  • Seppo Honkapohja

    (Bank of Finland
    EEAG)

  • Frank Westermann

    (EEAG
    University of Osnabrueck)

Abstract

The large and persistent current account deficits run by the United States from the second half of the 1990s have generated widespread concerns about the sustainability of current macroeconomic imbalances at the global level. To what extent is the US trade deficit sustainable? If not, what will global adjustment require? In particular, to what extent will the dollar depreciate? Will adjustment lead to global recession? What are the appropriate fiscal, monetary and financial policies to minimise the risks of disruption? Many observers (for example, Roubini and Setser 2004a, b, 2005a, b) fear that the correction of global imbalances could lead to a period of disorderly adjustment, characterised by turmoil in currency and asset markets, a slowdown in economic activity, and ultimately large welfare costs for the world economy as a whole.

Suggested Citation

  • Seppo Honkapohja & Frank Westermann, 2009. "Global Imbalances," Palgrave Macmillan Books, in: Seppo Honkapohja & Frank Westermann (ed.), Designing the European Model, chapter 9, pages 296-327, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-23665-3_10
    DOI: 10.1057/9780230236653_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    • Calmfors, Lars & Corsetti, Giancarlo & Honkapohja, Seppo & Kay, John & Saint-Paul, Gilles & Sinn, Hans-Werner & Sturm, Jan-Egbert & Vives, Xavier, 2006. "Global imbalances," Munich Reprints in Economics 20009, University of Munich, Department of Economics.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bems, Rudolfs & Dedola, Luca & Smets, Frank, 2007. "US imbalances: The role of technology and policy," Journal of International Money and Finance, Elsevier, vol. 26(4), pages 523-545, June.
    2. Kelvin Onwuka & Anayochukwu Basil Chukwu & Tobechi Faith Agbanike, 2021. "Current account and financial reforms: Evidence from sub‐Saharan Africa," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4303-4314, July.

    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:pal:palchp:978-0-230-23665-3_10. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.