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Industrial Revolutions and Global Imbalances

Author

Listed:
  • Alexander MONGE-NARANJO
  • Kenichi UEDA

Abstract

Based on historical data since 1845, we identify a stylized fact, namely, alternating waves in global imbalances generated by sequential industrial revolutions. We develop a new theory to explain this stylized fact. Our theory proposes a development-stage view for the optimal global imbalances. It explains the Lucas Paradox on capital flows as well as rises and falls in the external wealth of nations over time.

Suggested Citation

  • Alexander MONGE-NARANJO & Kenichi UEDA, 2017. "Industrial Revolutions and Global Imbalances," Discussion papers 17067, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:17067
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    File URL: https://www.rieti.go.jp/jp/publications/dp/17e067.pdf
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    References listed on IDEAS

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