Global Imbalances and Financial Stability:
This paper discusses two opposing views on global imbalances: The ""traditional view"", which regards the imbalances as a threat to global economic and financial stability, and the ""new paradigm"" view, which considers that they are the natural consequence of...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2007
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Schriftenreihe: | IMF Working Papers
Working Paper No. 07/111 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper discusses two opposing views on global imbalances: The ""traditional view"", which regards the imbalances as a threat to global economic and financial stability, and the ""new paradigm"" view, which considers that they are the natural consequence of economic and financial globalization. In terms of their policy implications, the traditional view focuses on monetary and fiscal policy decisions in the United States that need to be urgently reversed to avoid an abrupt unwinding of the imbalances involving a sell-off of dollar assets, a sharp increase in U.S. interest rates, and a hard landing for the global economy. By contrast, the new paradigm view considers that the imbalances will be resolved smoothly through the normal functioning of markets. The paper argues that an abrupt unwinding of imbalances is highly unlikely and advances a number of arguments in support of the new paradigm view |
Beschreibung: | 1 Online-Ressource (20 p) |
ISBN: | 1451866755 9781451866759 |
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spelling | Xafa, Miranda Verfasser aut Global Imbalances and Financial Stability Xafa, Miranda Washington, D.C International Monetary Fund 2007 1 Online-Ressource (20 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 07/111 This paper discusses two opposing views on global imbalances: The ""traditional view"", which regards the imbalances as a threat to global economic and financial stability, and the ""new paradigm"" view, which considers that they are the natural consequence of economic and financial globalization. In terms of their policy implications, the traditional view focuses on monetary and fiscal policy decisions in the United States that need to be urgently reversed to avoid an abrupt unwinding of the imbalances involving a sell-off of dollar assets, a sharp increase in U.S. interest rates, and a hard landing for the global economy. By contrast, the new paradigm view considers that the imbalances will be resolved smoothly through the normal functioning of markets. The paper argues that an abrupt unwinding of imbalances is highly unlikely and advances a number of arguments in support of the new paradigm view Online-Ausg http://elibrary.imf.org/view/IMF001/02839-9781451866759/02839-9781451866759/02839-9781451866759.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Xafa, Miranda Global Imbalances and Financial Stability |
title | Global Imbalances and Financial Stability |
title_auth | Global Imbalances and Financial Stability |
title_exact_search | Global Imbalances and Financial Stability |
title_exact_search_txtP | Global Imbalances and Financial Stability |
title_full | Global Imbalances and Financial Stability Xafa, Miranda |
title_fullStr | Global Imbalances and Financial Stability Xafa, Miranda |
title_full_unstemmed | Global Imbalances and Financial Stability Xafa, Miranda |
title_short | Global Imbalances and Financial Stability |
title_sort | global imbalances and financial stability |
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