This paper discusses two opposing views on global imbalances: The ""traditional view"", which regards the imbalances as a threat to global economic and financial stability, and the ""new paradigm"" view, which considers that they are the natural consequence of economic and financial...

This paper discusses two opposing views on global imbalances: The quot;traditional viewquot;, which regards the imbalances as a threat to global economic and financial stability, and the quot;new paradigmquot; view, which considers that they are the natural consequence of economic and financial...