INTERNATIONAL: Global disequilibria remain unlikely

Friday, August 8 2008

Read our full report (commissioned by Petrobras) on the impact of pre-salt oil discoveries

Relevant Country Data: United States

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SUBJECT: Potential for global imbalances from petrodollars.

SIGNIFICANCE: Booming oil revenues and the associated surge in global liquidity raise the possibility of imbalances of the type that led to the 1982 emerging market debt crisis.

Word Count (approx): 1222

Headings

  • Historical context
  • New petrodollars
  • New liquidity
  • Petrodollar investment
  • Bank deposits
  • Low risk assets
  • Domestic investment
  • Shifting destinations
  • Regional vulnerability
  • US vulnerability

Primary Keywords: INT, Asia, International, Latin America, Middle East, United States, economy, banking, capital flows, debt, foreign investment, natural resources, oil, prices

Secondary Keywords: IMF-World Bank, Japan, United Arab Emirates

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