Global imbalances: an unconventional view

Vladimir Popov

MPRA Paper from University Library of Munich, Germany

Abstract: Maintaining today’s global imbalances would help to overcome the major disproportion of our times – income gap between developed and developing countries. This gap was widening for 500 years and only now, in the recent 50 years, there are some signs that this gap is starting to decrease. The chances to close this gap sooner rather than later would be better, if the West would go into debt, allowing developing countries to have trade surpluses that would help them develop faster. Previously, in 16-20th century, it was the West that was developing faster, accumulating surpluses in trade with “the rest” and using these surpluses to buy assets in developing countries, while “the rest” were going into debt. Now it is time for “the rest” to accumulate assets and for the West to go into debt.

Keywords: Global imbalances; China; USA; economic growth; acumulation of foreign exchange reserves; debt (search for similar items in EconPapers)
JEL-codes: F02 F34 F43 F59 O11 (search for similar items in EconPapers)
Date: 2010-05
New Economics Papers: this item is included in nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Global Imbalances: An Unconventional View (2013)
Working Paper: Global Imbalances: Non-conventional View (2010)
Working Paper: Global Imbalances: Non-conventional View (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:28110

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