Publications and Research
Periodicals
Bank of Canada Review
Spring 2006
Index of Working Papers | Index of Technical Reports| Title | Global Imbalances—Just How Dangerous? |
| Author(s) | Bruce Little and Robert Lafrance |
| Type | Bank of Canada Review article |
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Date of publication |
Spring 2006 |
| Language | English |
| Abstract | The combination of rising current account surpluses in Asia and a growing current account deficit in the United States has raised concerns that the resulting imbalances pose a threat to the world economy, especially if they are reversed in a disorderly manner. Some experts believe that normal market forces will resolve these imbalances over time; others argue that policy-makers should facilitate the adjustment with policies that curb domestic demand in deficit countries and stimulate it in surplus countries. Little and Lafrance provide a guide to the major issues and controversies involved in the debate. |
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Bank topic index |
Balance of Payments and Components, Exchange Rates, International Topics |
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JEL classification |
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