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Global imbalances are defined. Several explanations for the development of large current account deficits and surpluses in key economies during the period after 1997 are discussed, including the saving-investment approach, the intertemporal approach, mercantilism and the Bretton Woods II...
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capital account openness, taking into account recent substantial international reserve accumulation. Since 1990, the trilemma … international reserves as a buffer while retaining some degree of monetary autonomy. We test the linearity of the trilemma, and find …
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