Danger Lurking in Global Macroeconomic Imbalances

By 2021, the global macroeconomic imbalance may return to the historic 2007-2008 levels that preceded the global financial crisis (aka the Great Depression). A high macroeconomic imbalance may be dangerous as the last time it reached these levels resulted in significant global economic downturn.
The global macroeconomic imbalance can be measured as the standard deviation of the annual current account balances (CAB) of the largest economies. As goods and services make up the predominant...