Discussion Paper
Globalization and imbalances in historical perspective
Abstract: Global imbalances associated with the U.S. current account deficit have given rise to speculation about the nature of the impending adjustment: Will it be smooth and gradual, or will it be sudden and costly? This paper summarizes the two views and then considers three historical periods with similar pressures--an earlier era of globalization from 1870 to 1914, the interwar gold standard, and Bretton Woods. A comparison of the periods and their outcomes suggests current global imbalances might resolve themselves quietly.
Keywords: International economic integration; Globalization;
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File(s): File format is application/pdf http://www.clevelandfed.org/Research/PolicyDis/PDP13.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Policy Discussion Papers
Publication Date: 2006
Issue: Jan
Order Number: 13