| 06 May 2009

International imbalances and international policy coordination

In a new Lowy Institute Perspective, Dr Stephen Grenville looks at the role of external imbalances and international capital flows in the global financial crisis. He argues that whether or not these imbalances were a major factor in explaining the current crisis, capital flows have often enough been associated with previous crises to demonstrate the need to put in place better financial infrastructure to link countries with surplus savings with the countries that have the best opportunities to use these savings. Dr Grenville suggests that this would be an appropriate challenge for the G-20 Leaders.Stephen Grenville

In a new Lowy Institute Perspective, Dr Stephen Grenville looks at the role of external imbalances and international capital flows in the global financial crisis. He argues that whether or not these imbalances were a major factor in explaining the current crisis, capital flows have often enough been associated with previous crises to demonstrate the need to put in place better financial infrastructure to link countries with surplus savings with the countries that have the best opportunities to use these savings. Dr Grenville suggests that this would be an appropriate challenge for the G-20 Leaders.Stephen Grenville