Global imbalances

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dc.contributor.author El Kallab, Tania
dc.date.accessioned 2017-09-05T10:27:08Z
dc.date.available 2017-09-05T10:27:08Z
dc.date.copyright 2014 en_US
dc.date.issued 2017-09-05
dc.identifier.uri http://hdl.handle.net/10725/6130 en_US
dc.description.abstract Three facts have characterized the pre-crisis debates in macroeconomics: the increase in the US current account de cit, the decline in interest rates and the increase in the share of US assets in global portfolios. Caballero, Farhi and Gourinchas (2008) described these "anomalies" as being external to the United States. The high saving rates in Asian countries in the aftermath of the collapse of their nancial markets led to a high demand for American nancial assets rather than domestic Asian ones, which were now considered unsafe. Our paper uses the basic model provided by Caballero, Farhi and Gourinchas to investigate whether an alternative explanation for these three facts, namely, the increase in American consumption. We show that the increase in US consumption would indeed cause a rise in capital ows towards the US (fact 1), but interest rates would rise rather than decrease (fact 2), and the share of american assets in global portfolios would not be a ected (fact 3). en_US
dc.language.iso en en_US
dc.title Global imbalances en_US
dc.type Article en_US
dc.description.version Published en_US
dc.title.subtitle "Made in the USA" or "Made in China" en_US
dc.author.school SOB en_US
dc.author.idnumber 200501744 en_US
dc.author.department Department of Economics (ECON) en_US
dc.description.embargo N/A en_US
dc.relation.journal THEMA en_US
dc.journal.issue 28 en_US
dc.article.pages 1-30 en_US
dc.keywords Current account deficits en_US
dc.keywords Capital flows en_US
dc.keywords Interest en_US
dc.keywords Interest rates en_US
dc.keywords Global portfolio share en_US
dc.keywords Consumption en_US
dc.keywords Financial assets en_US
dc.identifier.ctation El Kallab, T. (2014). Global Imbalances:" Made in the USA" or" Made in China"? (No. 2014-28). THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. en_US
dc.author.email tania.kallab@lau.edu.lb en_US
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url https://thema.u-cergy.fr/IMG/documents/2014-28.pdf en_US
dc.author.affiliation Lebanese American University en_US

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