Global imbalances in the XIX, XX and the XXI centuries

Eugeni, S.

Abstract

We establish a new stylized fact: while the current account and the trade balances are positively correlated during the second globalization (1990s–2010s), they were negatively correlated during the first globalization (1870s–1910s). We show that the reason behind is that the world interest rate is currently low relatively to the world growth rate due to a “global saving glut”, while this was not the case during the first globalization.

Citation

Eugeni, S. (2016). Global imbalances in the XIX, XX and the XXI centuries. Economics Letters, 145, 69-72. https://doi.org/10.1016/j.econlet.2016.05.018

• Journal Article Type: Article
• Acceptance Date: May 18, 2016
• Online Publication Date: Jun 1, 2016
• Publication Date: Aug 1, 2016
• Deposit Date: Jun 6, 2016
• Publicly Available Date: Dec 1, 2017
• Journal: Economics Letters
• Print ISSN: 0165-1765
• Electronic ISSN: 1873-7374
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 145
• Pages: 69-72
• DOI: https://doi.org/10.1016/j.econlet.2016.05.018
• Public URL: https://durham-repository.worktribe.com/output/1381423