02081cas a2200253 a 4500 AALejournalIMF006193 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451961966 1018-5941 BD-DhAAL BD-DhAAL Ohnsorge, Franziska. After the Crisis : Lower Consumption Growth But Narrower Global Imbalances? / Franziska Ohnsorge, Ashoka Mody. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We estimate consumption dynamics in the G-7 economies, paying particular attention to the possibility of precautionary behavior in the face of uncertainty. We find that in the short run, continued income uncertainty will significantly dampen consumption growth. As such, consumption in the G-7 economies is unlikely to be the engine that revives global growth. Differences in the pace and timing of consumption moderation have implications for the evolution of global imbalances. With the U.S. experiencing a sharper rise in unemployment and, perhaps, more widespread loss of financial wealth than elsewhere in the G-7, the relative rise of the U.S. savings rate is helping narrow global imbalances. But with a likely earlier recovery in the U.S., this narrowing could be short-lived. Moreover, long-term differences- in economic and financial volatility and in demographic structures-have been an important source of the imbalances and could soon reassert their prominence. Mode of access: Internet Mody, Ashoka. IMF Working Papers; Working Paper ; No. 2010/011 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/011/001.2010.issue-011-en.xml IMF e-Library