IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-29232-1_8.html
   My bibliography  Save this book chapter

Macroeconomic Imbalances in the United States and their Impact on the International Financial System

In: Minsky, Crisis and Development

Author

Listed:
  • Julia S. Loe

Abstract

While most economies grow through investment or export which expands demand, the US economy has kept up its growth by increased consumption. Using its privileged position to borrow money, the United States has reached a historically unprecedented level of current account deficit, which has been followed by a debt crisis in 2007–2008. This chapter argues that the financial crisis of 2007–2008 is symptomatic of macroeconomic imbalances in the United States, because the imbalances eventually are resolved in financial markets, and passed on to the real economy. On the other hand, the international financial system is dependent on US trade deficits for feeding liquidity into financial and commodity markets.

Suggested Citation

  • Julia S. Loe, 2010. "Macroeconomic Imbalances in the United States and their Impact on the International Financial System," Palgrave Macmillan Books, in: Daniela Tavasci & Jan Toporowski (ed.), Minsky, Crisis and Development, chapter 7, pages 127-141, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-29232-1_8
    DOI: 10.1057/9780230292321_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-29232-1_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.