Global imbalances in the XIX, XX and the XXI centuries

Sara Eugeni

Economics Letters, 2016, vol. 145, issue C, 69-72

Abstract: We establish a new stylized fact: while the current account and the trade balances are positively correlated during the second globalization (1990s–2010s), they were negatively correlated during the first globalization (1870s–1910s). We show that the reason behind is that the world interest rate is currently low relatively to the world growth rate due to a “global saving glut”, while this was not the case during the first globalization.

Keywords: Trade imbalances; First globalization; Global saving glut; Dynamic inefficiency; OLG models (search for similar items in EconPapers)
JEL-codes: F2 F4 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:145:y:2016:i:c:p:69-72

DOI: 10.1016/j.econlet.2016.05.018

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