The extent of these imbalances has become large, particularly in the aftermath of the Asian crisis and has generated issues of unsustainability of such global imbalances and chances of disorderly adjustment hampering the global economy, in general.
The contributing factors (i)  Twin deficits in the United States  The current global imbalance is largely attributed to the large and increasing CAD of the US that has been financed by surpluses elsewhere, especially in emerging Asia, oil exporters and Japan. The US has been experiencing a current account deficit in each year since 1982.