Balancing the World’s Imbalances

For the past year, China, the euro zone, Japan, Saudi Arabia, and the United States have been discussing among themselves and with the IMF plans to address global imbalances while sustaining robust economic growth. The orderly unwinding of imbalances will not occur overnight, but these economies' exercise in multilateral consultation is a welcome precedent for further international cooperation.

Good times – and these are good times for the global economy – are rarely the moment for concrete initiatives to deal with difficult problems. It is against this backdrop that I find welcome this weekend’s announcement by a group of major economies acknowledging their shared responsibility for the orderly resolution of global imbalances while sustaining robust growth.

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