Subscribe to The Informer for monthly expert analysis, and to Events for advance notice of visiting world leaders and distinguished guests.
You may unsubscribe from Lowy Institute newsletters at any time. For information on our privacy practices and how to unsubscribe, see our Privacy Policy.
Subscribe to The Informer for monthly expert analysis, and to Events for advance notice of visiting world leaders and distinguished guests.
You may unsubscribe from Lowy Institute newsletters at any time. For information on our privacy practices and how to unsubscribe, see our Privacy Policy.
Since the 1997-98 Asian crisis, the investment decline in East Asia, outside of China, combined with the falling in public and private savings in the United States, has contributed to the surge in global current account imbalances.
Domestic investment and external imbalances in East Asia
About the author
Warwick McKibbin
Professor Warwick McKibbin was a Professorial Fellow at the Lowy Institute for International Policy until October 2012.
Topics
Using a global simulation model, this paper explores the nature of policies and shocks that might reduce these imbalances: policies to raise domestic investment in East Asia; structural reforms in the corporate and financial sectors that lower financial risk and improve investment efficiency in East Asia; a significant fiscal consolidation in the United States; and a substantial decline in the housing market in the United States.
