The theory of global imbalances: mainstream economics vs structural Keynesianism
Review of Keynesian Economics, 2015, vol. 3, issue 1, 45-62
Prior to the 2008 financial crisis there was much debate about global trade imbalances. Prima facie, the imbalances seem a significant problem. However, acknowledging that would question mainstream economicsâ€™ celebratory stance toward globalization. That tension prompted an array of theories which explained the imbalances while retaining the claim that globalization is economically beneficial. This paper surveys those new theories. It contrasts them with the structural Keynesian explanation that views the imbalances as an inevitable consequence of neoliberal globalization. The paper also describes how globalization created a political economy that supported the system despite its proclivity to generate trade imbalances.
Keywords: global imbalances; saving glut; new Bretton Woods; asset shortage; structural Keynesianism (search for similar items in EconPapers)
JEL-codes: F02 F32 F33 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:elg:rokejn:v:3:y:2015:i:1:p45-62
Access Statistics for this article
Review of Keynesian Economics is currently edited by Louis-Philippe Rochon, Thomas Palley and Matias Vernengo
More articles in Review of Keynesian Economics from Edward Elgar Publishing
Bibliographic data for series maintained by Katie Smith ().