This concept was put forward by Michael Dooley, David Folkerts-Landau and Peter Garber, who argue that a new world equilibrium has emerged and it is in the best interest of both the United States and China to continue financing consumption of American households with Chinese savings until Chinese economy reaches a status of a developed economy, so the new Bretton Woods can last for many years;  2.  global savings glut hypothesis was proposed by Ben Bernanke 4 , who postulates that the shock causing global imbalances originated from Asia as a result of excessive saving rates;  1  I borrowed this aeronautical comparison from a recent paper by Calvo G. and Talvi E. (2006) “The Resolution of Global Imbalances: Soft Landing in the North, Sudden Stop in Emerging Markets?”, CERES, Documentos de Trabajo. 2  This list is based on Rybinski K. (2006) “Global imbalances”, Ekonomista 4/2006 (in Polish).
10.  recently Ricardo Caballero 13 presented his theory that (financial) asset shortages are at the heart of the global imbalances problem, and his idea was also put forward by Raghuram Rajan 14 speaking recently on (real, fixed) asset shortages. Asset shortages hypothesis  5  Rajan R. (2006) “Perspectives on Global Imbalances”, Remarks by Economic Counsellor and Director of IMF Research Department at the Global Financial Imbalances Conference London, United Kingdom, 23 January 2006; and Rato R. (2006) “Shared Responsibilities: Solving the Problem of Global Imbalances”, Speech of the International Monetary Fund Managing Director at the University of California at Berkeley, 3 February 2006. 6  Greenspan A., Kennedy J. (2005) “Estimates of Home Mortgage Originations, Repayments, and Debt on One-to-FourFamily Residences.” Federal Reserve Board, Finance and Economics Discussion Series Paper 2005-41; Lansing K. (2005) “Spendthrift Nation”, FRBSF Economic Letter, November 2005. 7  Greenspan A. (2005) “Current Account” presentation at Advancing Enterprise 2005 Conference (London, United Kingdom), 4 February 2005; OECD (2004) “Economic outlook”, June 2004; Faruqee H., Laxton D., Muir D., Pesenti P. (2005) “Current Accounts and Global Rebalancing in a Multi-Country Simulation Model”, presented at the NBER conference, “G-7 Current Account Imbalances: Sustainability and Adjustment”, 1–2 June 2005; Chinn M. (2005) “Getting Serious about Twin Deficits”, working paper, The Bernard and Irene Schwartz Series on the Future of American Competitiveness, CSR No. 10, September 2005.