For decades, policymakers’ perception has been that large capital inflows can fuel booms in asset prices. If this were true, bonanzas in capital inflows would imply an important risk to financial stability, since booms in asset prices are leading indicators of financial crises.
Capital inflows and booms in asset prices: Going beyond the current account
Eduardo Olaberría, 7 December 2013
China’s strong domestic demand has reduced its trade surplus
Françoise Lemoine, Deniz Ünal, 19 July 2012
Between 2005 and 2007 China’s accumulated huge trade surpluses and played a major part in the rise of global imbalances. The US and China have repeatedly come in conflict over the imbalance in bilateral trade.
Sudden stops in the Eurozone
Jean Pisani-Ferry, Silvia Merler, 2 April 2012
Many analysts and observers have put forward that the euro crisis is a balance-of-payments crisis at least as much as a fiscal crisis (e.g. Carney 2012, Giavazzi and Spaventa 2011, Sinn 2012, Wolf 2011).
The global financial crisis – What caused the build-up?
Erlend W Nier, Ouarda Merrouche, 25 March 2012
With all eyes currently on the latest twists being played out in the Eurozone, the global financial crisis, now in its fifth year, appears alive and well. But there is still little agreement on the underlying macroeconomic causes of the build-up of financial imbalances that unwound so dramatically since the summer of the 2007.
The growth effect of current-account reversals
Luiz de Mello, Pier Carlo Padoan, Linda Rousová, 18 June 2011
Fiscal policy and the current account
S. M. Ali Abbas, Jacques Bouhga-Hagbe, Antonio Fatás, Paolo Mauro, Ricardo Cicchelli Velloso, 16 September 2010
Today, as in the 1980s, government deficits and trade deficits are growing in tandem in some nations while government surpluses and trade surpluses are growing in others.
The $2 trillion dollar question: How about US demand and output?
Giancarlo Corsetti, Panagiotis Th. Konstantinou, 18 February 2009
In a recent Vox column, Gian Maria Milesi-Ferretti estimated that the US current account deteriorated by 15% of GDP in 2008.
Does exchange rate flexibility speed up current account adjustment?
Menzie D. Chinn , Shang-Jin Wei, 1 December 2008
“We also agreed that an orderly unwinding of global imbalances, while sustaining global growth, is a shared responsibility involving... greater exchange rate flexibility...”
G20 Communiqué, Meeting of Finance Ministers and Central Bank Governors, Cape Town, South Africa, November 17-18, 2007.
How do capital gains affect long run-current accounts?
Cédric Tille, 11 October 2008
The debate on the sustainability, or lack thereof, of global imbalances has kept policymakers and international economists busy for several years.
- Internationalisation, innovation, and productivity of firmsAltomonte, Aquilante, Békés, Ottaviano
- Predicting economic turning pointsAhir, Loungani
- How rich nations benefit from EU membershipCampos, Coricelli, Moretti
- The ECB should do QE via forex interventionFrankel
- The chartbook of economic inequalityAtkinson, Morelli
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Claessens, 18 April 2014
Campos, Coricelli, Moretti
Ostry, Berg, Tsangarides
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- Making city lights shine brighterYusuf, Leipziger
- The euro in the 'currency war'Bénassy-Quéré, Martin
- The roots of shadow bankingPerotti
- What’s wrong with Europe?Baldini, Manasse
- How the EZ crisis is permanently changing EU institutionsMicossi
- The 13th Annual GEP Postgraduate Conference 20141 - 2 May 2014 / Nottingham / Sponsored by Nottingham Centre for Research on Globalisation and Economic Policy (GEP) University of Nottingham, United Kingdom
- Exchange Rates and External Adjustment2 - 3 June 2014 / Zurich / Swiss National Bank
- 13th Summer School in International Development Economics: Investment, Saving and Wellbeing in Developing Countries10 - 13 June 2014 / Palazzo Feltrinelli, Gargnano, Lake Garda (Italy) / Organisers: Centro Studi Luca d’Agliano, Centre for Economic Policy Research (CEPR), Paolo Baffi Center on International Markets, Money and Regulation, Department of Economics, Management and Quantitative Methods of the University of Milan, Department of Economics, Quantitative Methods and Business Strategies of the University of Milan Bicocca, Vilfredo Pareto Doctoral Program in Economics of the University of Turin, The Lombardy Advanced School of Economic Research (LASER).
- 3rd WB-BE Research Conference: Financing growth: Levers, Boosters and Brakes23 - 24 June 2014 / Banco de España headquarters in Madrid / This conference is sponsored by Banco de España and The World Bank