Bernanke on Asia and imbalances

October 19, 2009 5:02pm

Bernanke sounds worried about a resurgence of global imbalances in the quarters ahead. He wants the US government to get serious about medium term fiscal consolidation and Asia to intensify efforts to shift away from export-led growth. Not particularly surprising. But he clearly believes that imbalances helped to foster the crisis and sees reserve accumulation as primarily the byproduct of a growth strategy rather than the causal impetus for trade surpluses.

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