This paper has two objectives. First, it reviews the recent dynamics of global imbalances (both “flow†and “stock†imbalances), with a special focus on the shifting position of Latin America in the global distribution. Second, it examines the cross-country variation in...

A large theoretical and empirical literature has focused on the impact of financial deepening on economic growth throughout the world. This paper contributes to the literature by investigating whether this impact differs across regions, income levels, and types of economy. Using a rich dataset...