Global rebalancing The first issue I want to address is global imbalances. Almost everyone is agreed that one of the root causes of the global financial crisis is the build-up of global imbalances.
In as much as global imbalances – no matter whether they were caused by a “consumption binge” in advanced economies or a “savings glut” in EMEs – were the root cause of the crisis, reducing imbalances is a necessary condition for restoring global financial stability. The post-crisis debate on global imbalances has three interrelated facets.