It explains that rapidly rising resource prices will result from by the increasing demands of the growing global middle class against supply sideconstraints.
Recent declines in output in both Japan and Germany are largely due to inadequate demand caused by overly tight monetary policy, and not to supply-side constraints imposed by the failings of their models.
Neither side understands very well the political and institutional constraints in the other's system, and both are inclined to assume the other is more strategic, centralized and internally disciplined than it is.