Politics

The new global imbalances: why care, why now and what should be done?

This essay analyses the causes of, and remedies for, external imbalances, and what countries should do if they do not decline.

Global imbalances are back: since 2018, the sums of current account surpluses and deficits have each increased by about 30 percent, reaching their highest levels since 2012. History shows that imbalances trigger trade tensions and often end in 
financial crises. Drawing on the 2026 CEPR-Bruegel Paris Report, this essay analyses the causes of, and remedies for, external imbalances, and what countries should do if they do not decline.

Source : Bruegel

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

Nvidia CEO joins Trump’s thorny trade mission to China

Trump embarks on the ‌first visit by a U.S. president to China in nearly a…

4 hours ago

The different effects of oil and gas supply shocks on euro area inflation

The surge in energy prices since March 2026 has revived questions about the pass-through to…

4 hours ago

The impact of emissions trading systems on manufacturing installation productivity: Evidence from Japan

Emissions trading systems have been widely studied globally, but less attention has been paid to…

4 hours ago

Dollar rises but still not far from pre-war levels, data awaited

Given the likelihood of elevated inflation readings, the CPI on Tuesday and PPI on Wednesday.…

18 hours ago

AI rally fizzles as Middle East ceasefire goes on ‘life support’

Oil rises, stocks fall as Middle East ceasefire falters and Strait of Hormuz remains blocked.…

18 hours ago

Gold falls as fading Middle East peace hopes lift dollar, oil

Trump to visit China this week, ​to discuss Iran ⁠with Xi. Gold fell from a…

18 hours ago