Chronic macro-economic and financial imbalances in the world economy: a meta-economic view

ROBERT GUTTMANN
2015 Brazilian Journal of Political Economy  
Global finance, combining offshore banking and universal banks to drive a broader globalization process, has transformed the modus operandi of the world economy. This requires a new "meta-economic" framework in which short-term portfolio-investment flows are treated as the dominant phenomenon they have become. Organized by global finance, these layered bi-directional flows between center and periphery manage a tension between financial concentration and monetary fragmentation. The resulting
more » ... . The resulting imbalances express the asymmetries built into that tension and render the exchange rate a more strategic policy variable than ever.
doi:10.1590/0101-31572015v35n02a01 fatcat:53vtsqykargklek6yepmtdgxs4