Global imbalances and financial fragility

Description

The global financial crisis of 2008 has brought the role of global imbalances (net capital flows) front and center in the debate on the international economic outlook. The presence of large and sustained current account imbalances has led academics and policy makers to ponder over how big a threat they represent to the global economy. In this note, we argue that it is the gross rather than the net capital flows which are a better indicator of the fragility of the global financial system.

Publication Date

1-4-2014

DOI

10.1007/978-81-322-1659-9_10

ISBN

978-8132216599

Publisher

Springer India

Keywords

Monetary Policy, Central Bank, Current Account, Real Interest Rate, Global Financial Crisis

Source Link URL

https://doi.org/10.1007/978-81-322-1659-9_10

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