Unformatted text preview: . Dasgupta (UofT) Topic 4 27 / 33 Balance of Payments Global imbalance Implications of the imbalance
Low interest rates.
Low mortgage rates that fueled a real estate boom in the U.S.
Rising home prices.
Increased borrowing against home equity and reduced savings.
A possible cause of the great recession of 2008-09? Dasgupta (UofT) Topic 4 28 / 33...
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- Spring '08
- Late-2000s recession, Sovereign wealth fund, Dasgupta, Global imbalance