The remarkable expansion in world output since 2003 has existed in tandem with so-called global imbalances—huge current account deficits in the U.S. matched by surpluses practically everywhere else. Foreigners have invested in dollar-denominated assets, and this inflow of money has financed Americans' expenditure in excess of income, which is reflected in the U.S. current account deficit. The upside of this enlarged expenditure is that, along with the dynamism of the emerging economies, it has served to propel vigorous global demand and growth.
展开▼
