An Analysis of Global Economic Imbalance, Balance and Rebalance
HUANG Wei-ping 1, ZHONG Biao 2
(1.Institutes of China’s Economic Reform & Development,Renmin University of China,Beijing 100872, China|2.School of Economics,Renmin University of China, Beijing 100872, China)
Abstract By reviewing the logical relations between the accelerated imbalance of global economy and the outbreak of subprime mortgage crisis, the authors probe into the global economic imbalance and the process of rebalancing. Global economic imbalance, a term once frequently used to describe the North-South economic relations, has changed to denote the unsustainability of current account of some core states. The housing bubble burst and outbreak of subprime crisis demonstrated the reality of imbalance between real economy and fictitious economy in the U.S.A, as well as the extreme development imbalance of capital markets around the world. And the crisis, which is a reflection of systemic risks of the world economy, also serves as a devastating adjustment to the past excessive global imbalance. The original intention of global economic balancing is to promote the economy of the developing countries, whereas rebalancing is a quantitative means aiming to adjust the growth model of major countries. In this regard, the RMB exchange rate should not be a reasonable and feasible solution to the global economic imbalance
2011, Vol. 28 
