14 October 2016 - Global imbalances and German responsibility

As Premier Matteo Renzi noted at the latest EU summit in Bratislava, Germany is responsible for a major imbalance in the global economy. Indeed, the German current account surplus has increased since 2008, while other countries that experienced major imbalances have seen declines in their trade balances . Among them is China, which has reduced its trade surplus, thus decreasing the vulnerability of the international financial system to sudden shocks. A note by Andrea Goldstein in www.lavoce.info explains what happened and warns against the possible amplification of the German imbalance.

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