Global Imbalances and External Adjustment after the Crisis

 
Author/Editor: Philip R. Lane ; Gian-Maria Milesi-Ferretti
 
Publication Date: August 12, 2014
 
Electronic Access: Free Full text (PDF file size is 680KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper has two objectives. First, it reviews the recent dynamics of global imbalances (both “flow” and “stock” imbalances), with a special focus on the shifting position of Latin America in the global distribution. Second, it examines the cross-country variation in external adjustment over 2008-2012. In particular, it shows how pre-crisis external imbalances have strong predictive power for post-crisis macroeconomic outcomes, allowing for variation across different exchange rate regimes. We emphasize that the bulk of external adjustment has taken the form of “expenditure reduction”, with “expenditure switching” only playing a limited role.
 
Series: Working Paper No. 14/151
Subject(s): Global imbalances | Latin America | Caribbean | Current account deficits | Fiscal adjustment | Cross country analysis

 
English
Publication Date: August 12, 2014
ISBN/ISSN: 9781498339216/1018-5941 Format: Paper
Stock No: WPIEA2014151 Pages: 45
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
Please address any questions about this title to publications@imf.org