Global Imbalances

Vijay Joshi

Chapter Chapter 7 in The Economic Crisis and the State of Economics, 2010, pp 83-88 from Palgrave Macmillan

Abstract: Abstract The current global economic crisis was triggered by the implosion of the wild credit boom that preceded it. The boom cannot be explained without understanding the micro-level dysfunctional incentives that permeated the financial sector. But that is not the whole story. The boom was also the product of macro-economic forces. The macro story goes back to the ex ante “savings glut” (or more accurately an excess of ex ante savings over investment) that in the last ten years took hold of economies of various countries such as Germany, Japan, China and East Asia more generally, and the oil-exporting countries, at various times, and for various reasons.

Keywords: Central Bank; Fiscal Policy; Greek Tragedy; Credit Boom; Global Imbalance (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-10569-0_8

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DOI: 10.1057/9780230105690_8

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