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My presentation at G20-IMF seminar on global imbalances
Current account balances show imprint of global firms through corporate saving (ie, undistributed profit of firms) 
Side note: corporate saving does not mean firms add to cash holdings; retained profit can be used for fixed investment as well as adding to cash balances
Global firms also make measurement of merchandise trade more challenging
“Exports” does not mean that goods actually cross the border; balance of payments exports can diverge from customs based exports
And some examples where the gap opens up in the other direction
Growing heft of global value chains and multinational firms have weakened traditional exchange rate channels; financial channel has strengthened
Two takeaways:
1. Accounting basis for macroeconomics looks stretched when global firms play such a big role; we need new elements/perspectives
and
1. Accounting basis for macroeconomics looks stretched when global firms play such a big role; we need new elements/perspectives
and
2. Financial channel of exchange rates plays an important role, even as impact of traditional trade channel wanes
Video of panel discussion is now up
meetings.imf.org/en/2019/Spring…
meetings.imf.org/en/2019/Spring…
