Global imbalances, G20 and international cooperation

Global imbalances have been a key factor in the outbreak of the recent global crisis. Furthermore, the massive accumulation of reserves implemented by the emerging and developing countries shows a dysfunctional aspect of the global economy. The G20 has included the theme of global imbalances in its agenda of priorities. Since much of the reduction in the imbalances was a cyclical phenomenon, it is likely that they will increase in the future. International cooperation was significant in mobilizing resources to the international community. However, the debates and implementation of relevant aspects of the international monetary system are still pending.