This internal adjustment might involve inflation in surplus countries and deflation in deficit countries.
The solution, FAO Director-General Jacques Diouf said, is increasing production and productivity in the low-income, food-deficit countries.
It means that deficit countries have to start getting serious about their midterm and long-term debt and deficits.
WHITEHOUSE: President Obama & President Medvedev Joint Press Conference | The White House
The German position could be described as follows: the deficit countries must adjust.
FORBES: Germany And China Have The Gold And Will Make The Rules
Instead the adjustment is being imposed almost entirely on deficit countries, guaranteeing that it will be long and painful.
ECONOMIST: Britain had a bad summit, but the euro zone had a worse one
The currencies of surplus countries are supposed to rise and the currencies of the deficit countries are supposed to fall.
FORBES: Germany And China Have The Gold And Will Make The Rules
Deficit countries are all competing for the good opinion of global savers.
But international imbalances also reflect how much governments borrow and in many deficit countries that has risen, partly offsetting the increase in private savings.
So the hope had been that weaker demand in deficit countries would be offset by faster spending from hitherto prudent German firms and consumers.
Household savings have risen in the US, the UK and other deficit countries, because consumers are borrowing less in the wake of the financial crisis.
At this point in the game, it is not in the ECBs interest to allow the deficit countries to collapse and drag down the entire Western European banking system with them.
Surplus countries should allow and reinforce expansion in their domestic economies to stimulate demand for imports while deficit countries were supposed to tighten domestic conditions and policies to stimulate exports relative to imports.
With the Eurozone expected to shrink a further 0.1% this year, after contracting 0.6% in 2012, European policymakers will have to work to achieve more symmetrical adjustment shared between core external surplus members, namely Germany, and peripheral deficit countries, Kraemer argues.
FORBES: Spain, Italy, And Even Greece Sell Bonds, But Europe's Crisis Is Far From Over
In both, a crisis of excess debt developed, in the 1920s created by war and today by a decade in which the new common currency generated huge financial flows from Germany and other surplus countries to deficit countries of the euro-zone periphery.
WSJ: Brussels Beat: Parallels With 1920s Raise Worries Over Extremism
Under this system, called Target2, one consequence of businesses and households taking their money out of the bank accounts of the deficit countries, such as Greece, Italy and Spain, is that the German central bank ends up lending vast sums to the central banks of those deficit countries.
This rebalancing is still a work in progress, but everybody is on record now saying surplus countries and deficit countries both have to be mindful of their policies and think about the adjustments that they need so that we can sustain economic growth and keep our borders open to goods and services over the long term.
Both surplus and deficit countries would benefit if there was a more balanced program in which the surplus countries were focused on internal demand, there was a more market-based approach to the currencies, and the deficit countries thereby were able to export more -- and that would also make it easier for them to deal with their unemployment issues.
WHITEHOUSE: President Obama and President Yudhoyono Press Availability | The White House
In fact, I have a vision that when the G20 meets later in the month in Seoul, that the world needs a new balance between deficit countries and surplus countries, and that balance has to be restored by paying more attention to the development -- of the development potential, including infrastructure development and energy infrastructure agricultural infrastructure in the poorer countries of the world.
WHITEHOUSE: President Obama and Prime Minister Singh Press Availability | The White House
But it also says, without citing any evidence, that Scotland currently has a bigger trade deficit with countries outside the UK. So if that's true and if that larger deficit were removed, it might mitigate against the impact of the loss of domestically-produced oil.
Overall, America had a deficit with 103 countries and a surplus with 104.
Roughly 67% of the U.S. deficit is with Asian countries, 16.5% with western European countries and 15.3% with Canada and Mexico.
The Keynesians are still arguing that Europe needs stimulus, but it was rampant deficit spending that got countries like Greece into trouble in the first place.
Rapid deficit reduction in these countries means that hits to output are now expected to be bigger than before, and are going to materialise in a weaker-than-anticipated global economic environment.
ECONOMIST: The IMF��s annual meetings: Time for a rethink | The
The fact that this interview is not dominated about Britain's sovereign debt crisis - even though we had a higher budget deficit than many of the countries we've just talked about - is I think a measure of the coalition government's success in having a credible economic policy.
These funds could be better spent addressing the skills deficit for disadvantaged youth in poor countries.
What the world is suffering from is not so much a savings glut as an investment deficit, in both rich and poor countries.
Some economists are surprised that the trade deficit, especially with euro-zone countries, did not widen sooner than it did and has not widened by more.
We seek to underweight countries with high debt and deficit.
The President of the European Central bank was critical too though in a far more guarded way of countries with a large budget deficit which are borrowing heavily now.
应用推荐