Global Imbalances and the Implications for Africa

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Date
2007
Journal Title
Journal ISSN
Volume Title
Publisher
The Hague
Abstract
indicated by D’Arista and Griffith-Jones (2006), the United States has for most of the past twenty five years carried current account deficits. In large part, the deficit has been sustained by a gradual depreciation of the US dollar vis-à-vis other major currencies, high growth rates in other parts of the world, and a willingness of non- US residents to increase their holdings of US dollars. The phenomenon of large and growing current account deficits of the United States (amounting to $869.1 billion in 2006, or 6.5 percent of GDP) and the associated large positions that foreigners (especially emerging economies) are amassing in US securities have become a central feature of the global economy, particularly in recent years. It has predictably garnered much attention from the financial press, policymakers, practitioners and, of course, academics. The three chapters by Barry Eichengreen and Yung Chul Park (2006), Jane D’Arista and Stephany Griffith-Jones (2006) and Fan Gang (2006) in the previous volume1 present an excellent discussion of many of the key issues and the way forward. My comments highlight some key issues to stimulate further discussion and then dwell briefly on the neglected region in the discourse – Africa.
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Keywords
Global Imbalances, Africa
Citation
Kasekende, L. (2007). Global imbalances and the implications for Africa. Global Imbalances and Developing Countries, 8. The Hague
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