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 resolved, increasing the risk of another global crisis. It is important to rethink how international finance and the global economy interact to prevent future crises.