Financial flows, financial crises, and global imbalances

Maurice Obstfeld

Journal of International Money and Finance, 2012, vol. 31, issue 3, 469-480

Abstract: In this lecture I document the proliferation of gross international asset and liability positions and discuss some consequences for individual countries’ external adjustment processes and for global financial stability. In light of the rapid growth of gross global financial flows and the serious risks associated with them, one might wonder about the continuing relevance of the net financial flow measured by the current account balance. I argue that global current account imbalances remain an essential target for policy scrutiny, for financial as well as macroeconomic reasons. Nonetheless, it is critically important for policymakers to monitor as well the rapidly evolving structure of global gross assets and liabilities.

Keywords: International financial flows; Gross international asset positions; Current account balance; Global imbalances; Financial instability (search for similar items in EconPapers)
JEL-codes: F32 F34 F36 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (122)

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Related works:
Working Paper: Financial Flows, Financial Crises, and Global Imbalances (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:31:y:2012:i:3:p:469-480

DOI: 10.1016/j.jimonfin.2011.10.003

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