global economic imbalances and future of us dollar

GLOBAL ECONOMIC IMBALANCE AND
FUTURE OF US DOLLAR
INTRODUCTION
GLOBAL ECONOMIC IMBALANCE BY THEIR VERY DEFINITION, A PROBLEM OF THE GLOBAL ECONOMY. GLOBAL IMBALANCE IS WHEN RESOURCES AND CAPITAL ARE NOT EVENLY DISRIBUTED AMONG NATIONS. There is a need to distinguish global imbalance from the concept of an internal (to a country) imbalance, which is typically understood in terms of full employment and the absence of inflationary pressures. When we speak of it, we often are referring to the large current account deficit in the United States and the matching surpluses in the other in other countries such as Japan, emerging Asia, some oil-exporting countries as well as Canada. In the US, the pursuit of credible medium-term fiscal consolidation remains paramount .The continued financing of the large us current account deficit depends on the future attitude of foreign investors towards the us assets. In its research futureofdollar.com faced a difficulty of finding successful investors, economists or foreign politicians with the opposite thinking.
DISCUSSION
Global economic imbalance, a result of capital flow, trade imbalance, monetary system imbalance and unsuitable policies of some advanced countries. There are many factors which are reasons of becoming dollar as reserve currency.
1. National Debt
2 Budget deficits
3 Economic impacts of U.S. international operations military operations
4China’s peg to the dollar
FUTURE OF US DOLLAR
The list of well-known people with similar thinking is endless. In its research futureofdollar.com faced a difficulty of finding successful investors, economists or foreign politicians with the opposite thinking. *the recession is over and the U.S. economy will have a sharp rebound, or*that the dollar will remain the primary reserve currency for a long time because during this last financial crisis investors found the dollar a safe haven, or*that there is no inflation threat, relying on the U.S. cause during this last financial crisis investors found the dollar a safe haven,.
CONCLUSION
Therefore, we came to a conclusion that, unfortunately, the U.S. economy and the dollar are losing confidence. Analysts called it the ‘flight from the dollar’ or ‘diversifying risks’ The U.S. government must work even harder now to restore although there is still no significant inflation data in the United States international stock and commodity markets grew abnormally within the last eleven months.
REFERENCES
WIKIPEDIA
GOOGLE.COM
SUBMITTED TO
GURDEEPAK SINGH
SUBMITTED BY –
NEERU THAKUR
MBA 1 (B)