Market Reflections

Thoughts, ideas and musings on current state and evolution of financial markets

Global Imbalances. The Real Problem

Raymond | June 16, 2009

Global imbalances are generally referred to as countries with chronic large current account deficits (US, GB for decades) versus other countries with chronic and large current account surplus (China, Japan).
Current account balance is calculated as difference between the inflow and outflow of money from a country. Some argue that these imbalances are the real reason [...]