June 2013 issue contents
Imbalances and Policies

by Vincenzo Quadrini
University of Southern California


In this commentary I raise some doubts about our readiness to address policy questions about global imbalances. A solid policy analysis requires a well-structured theoretical model that can account for the key empirical facts about imbalances, but progress in this direction is still limited. I also discuss problems associated with the practical implementation of optimal government policies.

JEL Codes: F36, F68.

Full article (PDF, 12 pages 304 kb)