Financial crash, commodity prices and global imbalances: A comment

Reinhart, Carmen (2009): Financial crash, commodity prices and global imbalances: A comment. Forthcoming in: Brookings Papers on Economic Activity (2009)

Abstract

I appreciate the opportunity to discuss this paper by Ricardo Caballero, Emmanuel Farhi, and Pierre-Olivier Gourinchas. This paper was described to me as a mix of theoretical and empirical work that attempts a hat trick: explaining the joint combination of global imbalances, the deflation of the housing price bubble that created the subprime crisis, and volatile oil prices.

• Item Type: MPRA Paper
• Language: English
• Keywords: oil prices volatility saving global imbalances
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy

References

Fisher, Irving, “The Debt-Deflation Theory of Great Depressions,” Econometrica 1, no. 4 (1933)

Gourinchas, Pierre-Olivier, and Hélène Rey, “From World Banker to World Venture Capitalist: US External Adjustment and the Exorbitant Privilege,” Working Paper 11563 (Cambridge, Mass.: National Bureau of Economic Research, 2005).

Schmidt-Hebbel, Klaus, and Luis Servén, “Saving across the World: Puzzles and Policies,” Discussion Paper 354 (Washington: World Bank, 1997).