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Did global imbalances cause the financial crisis?

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Claudio Borio, Piti Disyatat, 26 July 2011

Global imbalances loom large in G20 and IMF discussions, but are they to blame for the global crisis? This column argues that the emphasis on current-account imbalances is unhelpful and diverts attention from the monetary and financial factors that really sowed the seeds of the crisis.

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