TY - BOOK ID - 84542981 TI - Precautionary Savings and Global Imbalances in World General Equilibrium PY - 2011 SN - 145526539X 1462375820 128355416X 9786613866615 146230821X PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Saving and investment KW - Gross domestic product KW - Balance of payments KW - Current account balance (International trade) KW - International payments, Balance of KW - Foreign exchange KW - Terms of trade KW - Balance of trade KW - International liquidity KW - Domestic product, Gross KW - GDP KW - Gross national product KW - Accumulation, Capital KW - Capital accumulation KW - Capital formation KW - Investment and saving KW - Saving and thrift KW - Capital KW - Supply-side economics KW - Wealth KW - Investments KW - Econometric models. KW - Exports and Imports KW - Macroeconomics KW - Current Account Adjustment KW - Short-term Capital Movements KW - Open Economy Macroeconomics KW - Macroeconomics: Consumption KW - Saving KW - International Investment KW - Long-term Capital Movements KW - International economics KW - Current account KW - Current account surpluses KW - Current account imbalances KW - Precautionary savings KW - Foreign assets KW - Investments, Foreign KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542981 AB - In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy model composed by the US, the Euro Area, Japan, China, oil-exporting countries, and the rest of the world. These areas are assumed to differ only with respect to GDP volatility which is calibrated based on the 1980-2008 period. The model predicts a wide dispersion in net foreign asset positions, with the highly volatile oil-exporting countries accumulating very large asset holdings. While heterogeneity in GDP volatility may lead to large imbalances in international investment positions, its impact on current accounts is much weaker. This is because countries are expected to move towards their optimal NFA at a very slow pace. ER -