Abstract : There are complex interaction between Sovereign wealth funds and global economic imbalances. The depravation of global economic imbalance provides substantive foreign exchange reserves for SWFs development , so the emergence of SWFs is the production of global economic imbalance. Stabilization oriented SWFs regurgitate a mass of foreign exchange reserves to US financial market by buying US treasure bonds , so t hey play an important role in extending the durative of global economic imbalance. Contrarily , strategy-oriented SWFs invest foreign exchange reserves to t he risky capital market s in Japan ,Europe and emerging market s , which will contribute to t he adjustment of global economic imbalance through several ways.
Key words : sovereign wealth funds ; global economic imbalance ; foreign exchange reserves ; current
account surplus