Global imbalances are back with no clear path to resolution

reuters.com

2 points

latentframe

3 days ago


1 comment

latentframe 3 days ago

Interesting that global imbalances have never really disappeared but they were just hidden by low rates : cheap liquidity made deficits easy to finance and reduced the pressure to adjust ; now with higher rates those imbalances start to be important again bacause debt becomes more expensive, the capital flows become more selective and currency pressure is increasing