Global Imbalances / Adjustment Phase Question

Kevin!

Hi,

I've been given a question in an international management module, and I'm finding it very difficult to make sense of it:

'Critically examine the trends in global external imbalances over the past 15 years. A significant part of your essay should be devoted to analysing the external adjustment phase during the global crisis'

I've found 1 IMF report https://www.imf.org/external/pubs/ft/wp/2014/wp14151.pdf but finding it very difficult to decipher what I should be looking for - is there any keywords I could be looking for to analyse the external adjustment phase and what that might entail? / what the question might be looking for in its entirety

thanks

andrew

Kevin! wrote: »

Hi,

I've been given a question in an international management module, and I'm finding it very difficult to make sense of it:



I've found 1 IMF report https://www.imf.org/external/pubs/ft/wp/2014/wp14151.pdf but finding it very difficult to decipher what I should be looking for - is there any keywords I could be looking for to analyse the external adjustment phase and what that might entail? / what the question might be looking for in its entirety

thanks

That looks like a disgustingly general question to be fair. It's a bit hard to know exactly what the question is looking for without knowing more about what your course involves, because that could just as easily be a question in a module about international macroeconomics, for example.

Does your course touch on stuff like the balance of payments, the current account, the financial account, imports and exports etc.?

Kevin!

andrew wrote: »

That looks like a disgustingly general question to be fair. It's a bit hard to know exactly what the question is looking for without knowing more about what your course involves, because that could just as easily be a question in a module about international macroeconomics, for example.

Does your course touch on stuff like the balance of payments, the current account, the financial account, imports and exports etc.?

The notes for the topic touch on

CA imbalances, exchange rate adjustment vs output/expenditure adjustment post 2008, net foreign assets, output/expenditure contraction, reducing prices in your country

- very sparse expansion in the notes so even knowing what to research for to structure an answer would be great, topic was not taught due to time constraints

thanks

andrew

Kevin! wrote: »

The notes for the topic touch on

- very sparse expansion in the notes so even knowing what to research for to structure an answer would be great, topic was not taught due to time constraints

thanks

Wasn't taught but you still have to do an essay on it :eek:

Is this undergrad or masters level? Do you have any Economics background?Does the course have a reading list?

Anyway I'd recommend a book called "International Macroeconomics" by Feenstra and Taylor. If you have some economics knowledge then that'll explain all of the relevant concepts pretty intuitively.

Kevin!

andrew wrote: »

Wasn't taught but you still have to do an essay on it :eek:

Is this undergrad or masters level? Do you have any Economics background?Does the course have a reading list?

Anyway I'd recommend a book called "International Macroeconomics" by Feenstra and Taylor. If you have some economics knowledge then that'll explain all of the relevant concepts pretty intuitively.

undergrad, basic economics knowledge from some modules in previous years but seems very heavy for a business and management course in a international management module

thanks for the recommendation, I'll get reading!

Geuze

Global external imbalances refers to Balance of International Payments imbalances.

http://www.eiu.com/landing/Global_Imbalances

https://www.imf.org/external/pubs/ft/weo/2014/02/pdf/c4.pdf

http://www.bis.org/publ/work346.pdf

https://www.ecb.europa.eu/pub/pdf/scpops/ecbocp78.pdf?6b18b2abffc2ff5620dbf6d0b3f5a2d1

Geuze

Philip Lane, formerly of TCD, now with the CB, has written about global external imbalances:

https://www.imf.org/external/pubs/ft/wp/2014/wp14151.pdf

https://www.imf.org/external/np/res/seminars/2006/arc/pdf/mil.pdf

Geuze

http://www.voxeu.org/article/narrowing-global-imbalances