Global and euro imbalances: China and Germany

Guonan Ma and Robert McCauley

No 424, BIS Working Papers from Bank for International Settlements

Abstract: We analyse global and euro area imbalances by focusing on China and Germany as large surplus and creditor countries. In the 2000s, domestic reforms in both countries expanded the effective labour force, restrained wages, shifted income towards profits and increased corporate saving. As a result, both economies' current account surpluses widened before the global financial crisis, and that of Germany has proven more persistent as domestic investment has remained subdued.

Keywords: Global imbalances, current account, capital account, saving and investment, international assets and liabilities, distribution of income; world banker (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-09
New Economics Papers: this item is included in nep-eec and nep-opm
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Citations: View citations in EconPapers (11)

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Chapter: Global and Euro Imbalances: China and Germany (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:424

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