High Quality Content by WIKIPEDIA articles! Global Imbalances refers to the situation where some countries have more assets than the other countries. In theory, when the current account is in imbalance, it has a zero value: inflows and outflows of capital will be cancelled by each other. Hence, if the current account is persistently showing deficits for certain period it is said to show an inequilibrium. Since, by definition, all current accounts and net foreign assets of the countries in the world must become zero, then other countries become indebted with the other nations. During recent years, global imbalances have been concerned in rest of world. The United States has run long term deficits, as well as many other advanced economies, while country Asia and economies, among other countries, the opposite has occurred. Although this imbalance have reached unparalleled levels, it is far from being a new situations. And often, it is a sign of unsustainable features that occur a big...

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