ISSN 1300-1868
 

Original Research (Original Article) 


Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises

Hasan Cömert, Güney Düzçay.

Abstract
This study discusses the implications of developments in current account and financial accounts for both developed and developing countries with a specific reference to the global imbalances debate. There are two main arguments of the study. First, it may be misleading to focus on net capital flows or/and current accounts in order to detect the external sources of the last global crisis. In relation to this, a gross flow approach incorporated into the Minsky-Kindleberger model may be a more useful way of explaining the external sources of the last global crisis. Second, current accounts and net capital flows are much more relevant indicators for developing countries compared to their meaning in advanced countries. Although gross flows gains importance in countries with relatively developed financial markets, net financial flows would be better proxies for external sources of fragilities for developing countries due to the key roles played by exchange rates and reserve accumulation in these countries under the current global financial order.

Key words: Global Imbalances, Current Accounts, Capital Flows, Minsky-Kindleberger Approach, Developing Countries. JEL Classification: F32, F41 F44, B5.



Küresel Dengesizlikler ve Kriz Tartışması Işığında Cari Denge ve Sermaye Hesabını Anlamak

Ozet
Bu çalışma gelişmiş ve gelişmekte olan ülkelerde cari ve finansal hesapları küresel dengesizlikler ve kriz tartışmaları ışığında anlamaya çalışmaktadır. Makalenin iki temel tezi vardır. Birincisi, son kürsel krizin harici kaynaklarını anlamak için net finansal akımlara/cari hesaplara odaklanmak yanıltıcı olabilir. Minsky-Kindleberger modeline eklemlenmiş bir bürüt akımlar yaklaşımı son küresel krizin harici kaynaklarını çok daha iyi açıklayabilir. İkincisi, cari hesaplar ve net finansal akımlar gelişmiş ülkelere göre gelişmekte olan ülkelerde daha anlamlı göstergelerdir. Bürüt akımlar derin finansal piyasaları olan ülkelerde önem kazanırken, net finansal akımlar kırılganlıkların harici kaynaklarını anlamak için gelişmekte olan ülkelerde daha geçerli göstergelerdir. Bunun sebebi döviz kuru ve döviz rezervleri gibi etmenlerin günümüz küresel finans düzeninde gelişmekte olan ülkeler için hayati bir öneme sahip olmasıdır.

Anahtar Kelimeler: Küresel Dengesizlikler, Cari Hesaplar, Sermaye Akımları, Minsky-Kindleberger Yaklaşımı, Gelişmekte Olan Ülkeler. JEL Sınıflaması: F32, F41, F44, B5.


 
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How to Cite this Article
Pubmed Style

Hasan Comert, Guney Duzcay. [Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]. Ekonomik Yaklasim. 2015; 26(96): 59-90. Turkish. doi:10.5455/ey.35901


Web Style

Hasan Comert, Guney Duzcay. [Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]. http://www.ekonomikyaklasim.org/?mno=174932 [Access: June 17, 2019]. Turkish. doi:10.5455/ey.35901


AMA (American Medical Association) Style

Hasan Comert, Guney Duzcay. [Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]. Ekonomik Yaklasim. 2015; 26(96): 59-90. Turkish. doi:10.5455/ey.35901



Vancouver/ICMJE Style

Hasan Comert, Guney Duzcay. [Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]. Ekonomik Yaklasim. (2015), [cited June 17, 2019]; 26(96): 59-90. Turkish. doi:10.5455/ey.35901



Harvard Style

Hasan Comert, Guney Duzcay (2015) [Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]. Ekonomik Yaklasim, 26 (96), 59-90. Turkish. doi:10.5455/ey.35901



Turabian Style

Hasan Comert, Guney Duzcay. 2015. [Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]. Ekonomik Yaklasim, 26 (96), 59-90. Turkish. doi:10.5455/ey.35901



Chicago Style

Hasan Comert, Guney Duzcay. "[Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]." Ekonomik Yaklasim 26 (2015), 59-90. Turkish. doi:10.5455/ey.35901



MLA (The Modern Language Association) Style

Hasan Comert, Guney Duzcay. "[Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]." Ekonomik Yaklasim 26.96 (2015), 59-90. Print.Turkish. doi:10.5455/ey.35901



APA (American Psychological Association) Style

Hasan Comert, Guney Duzcay (2015) [Understanding Developments in Current Accounts and Financial Flows in Light of Discussions on Global Imbalances and Recent Crises]. Ekonomik Yaklasim, 26 (96), 59-90. Turkish. doi:10.5455/ey.35901