Global Imbalances: Avoiding a Tragedy of the Commons

2019-03-25T11:14:49-04:00July 28, 2017|

By Gustavo Adler and Luis Cubeddu

July 28, 2017 

Since 2013, global imbalances have become increasingly concentrated in advanced economies. Surplus and deficit countries alike bear responsibility for correcting excess external imbalances  (photo: Caro Oberhaeuser/Newscom)

We have just released our latest assessments of external positions for the 29 largest economies. As discussed in this year’s External Sector Report, excess current account imbalances—that is, those beyond the levels warranted by country fundamentals—were broadly unchanged in 2016. They represented about one-third of total actual surpluses and deficits, with only small shifts in 2016. […]