Objectives:
Global financial imbalances is a one of a contemporary challenge in the world economy. It is not new problem. After Second World War was huge financial imbalances between USA and the rest of the World. The foreign debt of USA against rest of the world started to grow in the end of sixties. USA from the creditor became the debtor. After collapse of Bretton Woods gold standard currency system situation became more complicated.
But contemporary financial imbalances had its sources in the beginning of nineties. and is linked with processes of globalization and global integration of financial markets.
The global financial imbalances are generally noticed as imbalances between USA and China. But it is just see this phenomenon broadly. It is also imbalances between euro area, EU and the rest of the world. In the EU w there are few countries with surplus in current account (e.g. Germany) and a lot of countries with increasing deficit in current account. In accordance to the twin deficit hypothesis for the latter countries the increasing general government balance deficit is a specific feature as a one of the cause of the deficit in the current account. Some of those countries have also problem with foreign government debt.
The aim of paper is answer the following questions:
1) What are the causes of global financial imbalances in the context of the contemporary global currency system, differences in economic growth, rates of national savings and level of national demand, level of national financial market development?
2) What is the role of Germany and Japan in the global payment imbalances?
3) What is the impact of Germany and Japan economies international competitiveness in the global payments imbalances?
In the analysis will be used available statistics and quantitative methods.
Data/Methods
Critical analyzes of theoretical aspects of international payment imbalances. Statistical analyzes of available data concern German, Japan, USA, China and chosen EU countries balance of payments, public debt etc.
Expected results
Analyses will show tendencies and causes of international payment imbalances especially in relation Japan and Germany to the rest of the world.
Keywords: international imbalances, economic growth, exports, imports, balance of payments, current account, currency, domestic absorption.
JEL Number: F02 , F32