THE GLOBAL IMBALANCES FROM THE PERSPECTIVE OF THE OIL-EXPORTING COUNTRIES

"Global imbalances" refer to the differences between the structural external deficit and surpluses of emerging and oil-exporting countries. The aim of this contribution is to assess and focus on certain issues encountering the global economy from the perspective of oil exporting countries. The world has witnessed emergence of global imbalances; large and persistent current account (CA) surpluses in some countries and CA deficits in others. Such imbalances are believed to exacerbate excessive monetary creation, because emerging and oil-exporting countries recycle their external surpluses to OECD countries (mainly in the USA) via the accumulation of foreign exchange reserves. The unsustainability of this pressing concern has raised some fears of increased global risks.