Global and Euro Imbalances: China and Germany

32 Pages Posted: 27 Feb 2014

See all articles by Guonan Ma

Guonan Ma

Bruegel

Robert N. McCauley

University of Oxford - Oxford Centre for Global History; Boston University, Global Development Policy Center

Multiple version iconThere are 2 versions of this paper

Date Written: September 2013

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.

Keywords: Global imbalances, current account, capital account, saving and investment, international assets and liabilities, distribution of income, world banker

JEL Classification: F15, F32

Suggested Citation

Ma, Guonan and McCauley, Robert N. and McCauley, Robert N., Global and Euro Imbalances: China and Germany (September 2013). BIS Working Paper No. 424, Available at SSRN: https://ssrn.com/abstract=2390167

Guonan Ma (Contact Author)

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium, 1210
Belgium

Robert N. McCauley

Boston University, Global Development Policy Center ( email )

67 Bay State Road
Boston, MA 02215
United States

University of Oxford - Oxford Centre for Global History ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

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