POLICY BRIEF: IMBALANCES WILL CONTINUE TO RULE OVER THE GLOBAL ECONOMY

Joergen Oerstroem Moeller
Additional contact information
Joergen Oerstroem Moeller: ISEAS Yusof Ishak Institute, 30 Heng Mui Keng Terrace, Singapore 119614, Singapore†Singapore Management University, 81 Victoria Street, Singapore 188065, Singapore‡Copenhagen Business School, Copenhagen University, Howitzvej 60, 2000 Frederiksberg, Denmark

The Singapore Economic Review (SER), 2016, vol. 61, issue 05, 1-9

Abstract: Global debt will keep growth subdued over the next decade. Falling work force will move labor intensive manufacturing out of China and into South Asia. Investment, not consumption, will be the main driver of growth, which primarily will take place in Asia and probably also Africa. New institutional frameworks such as AIIB emerge, but they will operate inside the existing global order. Falling albeit still tangible Chinese saving combined with fading interest for US treasury bonds will pose an awkward dilemma for US monetary policy. Under such circumstances current savings–investment balances will continue to rule the global economy.

Keywords: Global imbalances; China savings surplus; global investment pattern; demography; productivity; consumption (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590816710028
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:61:y:2016:i:05:n:s0217590816710028

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590816710028

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().