Free The Role Of Macroeconomic Policy In Global Imbalances Report Example

The global imbalances continue to be a great concern to most economists and planners. The imbalances in the world started right from the 1st century where the economists could not control the macroeconomic policies. The trend continues to increase, and people continue to do research on the global balances but cannot get proper information that can heal the world from the imbalances it is facing. Issing’s article tries to analyze the recent trends that have contributed to the global imbalances (Issing 30).
The article concentrates on the role of macroeconomic policy in the global imbalances and how to solve future problems in the macroeconomic policies. It is important to note that macroeconomic policies are among the driving forces of the economy, and the strength of a state or region depends on the macroeconomic environment. The article looks at the saving-investment imbalances, structural reforms, foreign exchange markets and other macroeconomic activities. The conclusion shows that the global imbalances of private savings contribute to global imbalances in the economy (Issing 35).
It is evident that the ideas discussed in the paper are true, and the research shows how daily activities impact the world economy. I am certain that private businesses and private investments have raised in all parts of the world, and people yearn to invest in the fields that will generate money in a twinkle of a second. The less number of private investors in the world control most of the resources and money causing a huge disparity.
The article is in line with the economic principles showing that the global imbalances are a result of lack of control in the macroeconomic policies. The world needs to move to another level where people and policies promote equity among the inhabitants. The global imbalances can lead to a number of economic crises that will be hard to stop.

Work cited

Issing Otmar. "Addressing Global Imbalances: The Role for Macroeconomic Policy " MIT-Sloan School of Management. Web. 2005.