Imbalances could treble in next two decades: Bank's Haldane

andrew-haldane-bankofengland

Financial integration and differences in savings behaviour could treble global imbalances by 2040, Andy Haldane, the executive director for financial stability at the Bank of England, said in a speech published Tuesday.

Cross-country GDP convergence was one structural factor which would shape the path of financial integration, Haldane said, noting that the convergence of international income levels is a well established empirical phenomenon. "Accompanying this GDP convergence is likely to be a c