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Global and Euro Imbalances: China and Germany

In: 50 Years of Money and Finance: Lessons and Challenges

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  • Robert N. McCauley
  • Guonan Ma

Abstract

We analyse global and euro area imbalances by focusing on China and Germany as large surplus and creditor countries. In the 2000s, domestic reforms in both countries expanded the effective labour force, restrained wages, shifted income towards profits and increased corporate saving. As a result, both economies' current account surpluses widened before the global financial crisis, and that of Germany has proven more persistent as domestic investment has remained subdued.
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Suggested Citation

  • Robert N. McCauley & Guonan Ma, 2013. "Global and Euro Imbalances: China and Germany," SUERF 50th Anniversary Volume Chapters, in: Morten Balling & Ernest Gnan (ed.), 50 Years of Money and Finance: Lessons and Challenges, chapter 2, pages 43-72, SUERF - The European Money and Finance Forum.
    • Handle: RePEc:erf:erfftc:1-2
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    Cited by:

    1. Stefan Behrendt, 2014. "The Fiscal Compact and Current Account Patterns in Europe," Global Financial Markets Working Paper Series 2014-52, Friedrich-Schiller-University Jena.
    2. Claudio Borio & Harold James & Hyun Song Shin, 2014. "The international monetary and financial system: a capital account historical perspective," BIS Working Papers 457, Bank for International Settlements.
    3. Storm, Servaas & Naastepad, C.W.M., 2015. "Crisis and recovery in the German economy: The real lessons," Structural Change and Economic Dynamics, Elsevier, vol. 32(C), pages 11-24.
    4. Servaas Storm & C.W.M. Naastepad, 2015. "NAIRU economics and the Eurozone crisis," International Review of Applied Economics, Taylor & Francis Journals, vol. 29(6), pages 843-877, November.
    5. Wijngaards, Indy & Hendriks, Martijn & Burger, Martijn J., 2019. "Steering towards happiness: An experience sampling study on the determinants of happiness of truck drivers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 128(C), pages 131-148.
    6. Kalair, A. & Abas, N. & Khan, N., 2016. "Comparative study of HVAC and HVDC transmission systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1653-1675.
    7. Claudio Borio, 2014. "The international monetary and financial system: its Achilles heel and what to do about it," Globalization Institute Working Papers 203, Federal Reserve Bank of Dallas.
    8. Servaas Storm & C.W.M. Naastepad, 2015. "Crisis and Recovery in the German Economy: The Real Lessons," Working Papers Series 10, Institute for New Economic Thinking.
    9. Rainer Frey & Ulrich Grosch & Alexander Lipponer, 2014. "Fallstricke bei der Bestimmung von Vermögensverlusten deutscher Anleger im Ausland," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(11), pages 806-812, November.

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    More about this item

    Keywords

    Global imbalances; current account; capital account; saving and investment; international assets and liabilities; distribution of income; world banker.;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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