Global Rebalancing
Author | : Yongzheng Yang |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 2011-10-01 |
ISBN-10 | : 9781463922610 |
ISBN-13 | : 1463922612 |
Rating | : 4/5 (612 Downloads) |
Download or read book Global Rebalancing written by Yongzheng Yang and published by International Monetary Fund. This book was released on 2011-10-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: While global rebalancing will mainly involve structural realignment among major advanced and emerging market economies, it could have significant impact on low-income countries (LICs). Simulations using a global general equilibrium model show that a more balanced global economy would tend to improve the current account balance in LICs with limited impact on domestic output. However, there could be adverse terms of trade effects on some LICs as the prices of manufactured goods rise. On the other hand, such prices increases could provide an impetus to export diversification in many LICs, raising growth in the long run. The output and terms of trade effects would be significantly amplified if structural adjustment is impeded by factor immobility and other rigidities.