A global model of recovery and rebalancing

Update Item Information
School or College College of Social & Behavioral Science
Department Economics
Creator Arnim, Rudiger von
Other Author Steve Bannister and Nathan Perry
Title A global model of recovery and rebalancing
Date 2012-08-01
Description This paper presents an investigation of global recovery from the Great Recession and the rebalancing of global external imbalances, using a global model of 16 countries and composite regions. The model applies to the short term and only to the real side. Key features are demand-driven output determination, pro-cyclical aggregate labor productivity, imperfect competition in product markets and simple bar- gaining in non-clearing labor markets, which together determine the functional distribution of income. Trade is modelled in a bilateral import matrix; particular attention is paid to international adjustment. Simulation results suggest that early exit from fiscal support threatens a fragile recovery. Further, domestic demand expansion and revaluation in real terms in surplus countries are necessary for rebalancing, and a variety of measures can be employed to achieve these goals.
Type Text
Publisher University of Utah
First Page 1
Last Page 32
DOI doi:10.1093/cje/bes043
Subject Global imbalances; great recession; global model
Language eng
Rights Management (c) Rudiger von Arnim,
ARK ark:/87278/s6r21k64
Setname ir_uspace
ID 708758
Reference URL https://collections.lib.utah.edu/ark:/87278/s6r21k64