Global Economy's Imbalance Linked to Foreign Assets, Trade, and Exchange Rates.
The study looked at what causes countries to have more money going out than coming in. For developed countries, having more foreign assets, open trade, and stable exchange rates leads to a positive balance. But for emerging countries, high commodity prices, economic growth, and open trade are linked to a positive balance. On the other hand, having more foreign assets and stable exchange rates is linked to a negative balance for emerging countries. These factors affect current account balances differently for different types of countries.