Causes and Consequences of Global Imbalances: Perspective from Developing Asia

Abstract

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Global Imbalances and Foreign Asset Expansion by Developing Economy Central Banks

“…Some studies have pointed to the possible connection between reserve accumulation and current account surpluses in Asia, but they generally have not conducted statistical analysis of this connection. See, for example, Dooley, FolkertsLandau, and Garber (2004), Cova, Pisani, and Rebucci (2009), Adams andPark (2009), andCook andYetman (2011).…”

Asia's contribution to global rebalancing

“…Each of these five sets of economies also exhibited similar underlying factors that drove their current account performance (Adams and Park 2009). …”

“…Much intra-regional trade in emerging Asia continues to be in intermediate goods and components-ultimately as components for goods consumed outside the region (ADB 2007 andKim, Lee, andPark 2009). Thus, the region continues to depend on extra-regional rather than intra-regional demand.…”

Economic Policies, Governance and the New Economics

“…Actually, they have performed much better than the models based on the imports substitution implemented by Latin American economies in the second half of the last century. However, this growth model, at least in some emerging economies, like, for instance China, can be nowadays generating higher costs than benefits (Adams and Park, 2009). This can be contributing to accelerate the need to implement in these countries reforms focused on the stimulus of the domestic demand.…”