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Global imbalances: an unconventional view

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  • Popov, Vladimir

Abstract

Maintaining today’s global imbalances would help to overcome the major disproportion of our times – income gap between developed and developing countries. This gap was widening for 500 years and only now, in the recent 50 years, there are some signs that this gap is starting to decrease. The chances to close this gap sooner rather than later would be better, if the West would go into debt, allowing developing countries to have trade surpluses that would help them develop faster. Previously, in 16-20th century, it was the West that was developing faster, accumulating surpluses in trade with “the rest” and using these surpluses to buy assets in developing countries, while “the rest” were going into debt. Now it is time for “the rest” to accumulate assets and for the West to go into debt.

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  • Popov, Vladimir, 2010. "Global imbalances: an unconventional view," MPRA Paper 28110, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:28110
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    References listed on IDEAS

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    1. Dani Rodrik, 2006. "The social cost of foreign exchange reserves," International Economic Journal, Taylor & Francis Journals, vol. 20(3), pages 253-266.
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    5. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
    6. Polterovich, Victor & Popov, Vladimir, 2003. "Accumulation of Foreign Exchange Reserves and Long Term Growth," MPRA Paper 20069, University Library of Munich, Germany.
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    Cited by:

    1. Popov, Vladimir, 2024. "Balance of Payments, Exchange Rate, and Foreign Exchange Reserves in China since 1979," MPRA Paper 121627, University Library of Munich, Germany.
    2. Sundaram, Jomo Kwame & Popov, Vladimir, 2013. "Whither Income Inequalities?," MPRA Paper 52154, University Library of Munich, Germany.
    3. Vladimir Popov & Kwame Sundaram Jomo, 2020. "Exchange Rate Undervaluation and Growth in China," Development, Palgrave Macmillan;Society for International Deveopment, vol. 63(1), pages 120-125, March.
    4. Horvath, Denis & Sulikova, Veronika & Gazda, Vladimir & Sinicakova, Marianna, 2013. "The distance-based approach to the quantification of the world convergences and imbalances - comparisons across countries and factors," MPRA Paper 45033, University Library of Munich, Germany.
    5. Popov, Vladimir, 2019. "Successes and failures of industrial policy: Lessons from transition (post-communist) economies of Europe and Asia," MPRA Paper 95332, University Library of Munich, Germany.

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    More about this item

    Keywords

    Global imbalances; China; USA; economic growth; acumulation of foreign exchange reserves; debt;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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