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
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