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Monday, October 19, 2009
The Fed chief has sounded the alarm and echoed my comments on global imbalances, saying it was 'extraordinarily urgent' that the US and Asia implement policies to combat the return to old habits. For the US, this includes a sustainable and credible fiscal consolidation, and for Asia, a shift away from export-led growth and greater exchange-rate flexibility.
He also made the connection between global imbalances (capital flows) and regulatory failures, and called on countries to address these issues simultaneously.
Labels: China, Currencies, macroeconomic imbalances
