However, trade-related factors cannot explain the magnitude of the imbalances observed. 2/7  Savings/Investment View I: Global imbalances largely reflect low savings in the US (fiscal and private). The gloomy side of this perspective emphasises the widening fiscal deficits in the US and/or bubbledriven wealth effects in private consumption (housing market).
Batini, N., T. Callen and W. McKibbin (2006), “The Global Impact of Demographic Change”, IMF Working Paper 06/9. Bean, C. (2004), “Global Demographic Change: Some Implications for Central Banks”, Overview Panel, FRB Kansas City Annual Symposium, Jackson Hole, Wyoming. Becker, G.S., K.M. Murphy and R. Tamura (1990), “Human Capital, Fertility, and Economic Growth”, Journal of Political Economy 98(5), pp. S12-S37.