Contributing Authors: Mark Allen, Henk Brouwer, Ariel Buira, Jane D’ Arista, Brian Kahn, Martín Abeles, Seeun Jeong, Louis Kasekende, Li-Gang Liu, Yonghyup Oh, William White, John Williamson, Willem Thorbecke, Masaru Yoshitomi
This is the second volume to “Global Imbalances and the US Debt Problem: Should Developing Countries Support the US Dollar?”
About the Book
The abrupt unwinding of global imbalances is a major risk for the world economy; it affects countries across the globe, but is particularly harmful to developing countries.
This second volume on global imbalances includes an unorthodox, long-term view on global imbalances, an in-depth discussion about the role of the IMF, and a discussion about the need for reform of the international monetary and financial system. It pays special attention to Africa and East Asia.
Recalling that the US current account deficit – which accounts for 70 percent of the world sum of current account deficits, hence absorbs 70 percent of net available global saving – lies at the heart of the problem, the contributing authors stress that the present global imbalances cannot be sustained indefinitely.
The authors suggest various remedies, ranging from capital market integration in East Asia to the creation of an international clearing agency that would serve as the institutional platform for a new global payments system. Some authors question the viability of far-reaching reform proposals while others stress the need for designing challenging remedies – not only for the sake of anticipating a breakdown in the world financial system but also because the current system (or non-system as some call it) can benefit from ideas for improvements.
- Notes on the Contributors
- Global Imbalances and the Implications for Africa
- East Asia’s Role in Resolving the New Global Imbalances
- An African Perspective: Comments on Yoshitomi, Liu and Thorbecke
- Rebalancing Savings-Investment Gaps in East Asia
- The Need for a Longer Policy Horizon: A Less Orthodox Approach
- Global Imbalances and the Role of the IMF
- Global Imbalances and the Role of the IMF: A Comment on Ariel Buira and Martín Abeles
- The Future of the International Monetary System
- A More Balanced International Monetary System
- Reforming the International Monetary System: Comments on Jane D’Arista and John Williamson
- A Response to the Comments of Henk Brouwer