Global imbalances fueling risk of new global financial crisis, study finds.
Financial globalization and global imbalances were major factors in the 2008 global financial crisis. The relationship between global finance and the global economy is crucial, with imbalances in GDP, current accounts, and capital flows playing a key role in the crisis. These imbalances have not been fully addressed, increasing the risk of another crisis. It is important to rethink how international finance impacts the global economy to prevent future crises.