The recipients of this largesse, the surplus countries, of course love the U.S. spendthrift ways.
This internal adjustment might involve inflation in surplus countries and deflation in deficit countries.
That means that surplus countries are going to have to think about how are we spurring domestic demand.
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But there are good reasons why surplus countries may think hard now before shifting their portfolios into riskier assets.
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And surplus countries, living well within their means, would have to buy more.
The currencies of surplus countries are supposed to rise and the currencies of the deficit countries are supposed to fall.
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They could do that more easily if consumers in China and the other surplus countries were willing to buy more imported goods.
How will global imbalances be corrected if surplus countries try to depreciate?
"Much more needs to be done to promote effective global rebalancing, which requires stronger demand in surplus countries and continued progress toward greater exchange rate flexibility, " Mr Lew said.
Surplus countries have little choice but to place most of their spare funds in the reserve currency since it is used to settle trade and has the most liquid bond market.
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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.
It works in reverse for chronically surplus countries.
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Given actual exchange-rate movements, the IMF reckons that if the only thing surplus countries had done was to let their currencies rise, then growth might have ended up declining by between two and four percentage points.
Surplus countries built up their foreign-exchange reserves.
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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.
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The parameters for such interventions are evidently the subject of considerable controversy, particularly given the need to comply with the EU Treaty and the sensitivities towards any formal program of purchases expressed by central banks from the surplus countries (Germany and possibly Benelux, Finland and Austria), Barclays said.
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.
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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.
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In pitching the very same bilateral trade agreements two and three years ago that the business community is pitching today, then-USTR Susan Schwab liked to remind Congress that the United States had an aggregate trade surplus with the countries with whom the Bush administration had concluded free trade agreements, as though that were the appropriate success metric.
Overall, America had a deficit with 103 countries and a surplus with 104.
But I also voiced to President Obama Brazil's concern regarding the monetary expansion policies that ultimately mean that countries that have a surplus be able to strike a balance in those economic monetary expansion policies through fiscal policies that are ultimately based on expanding investments.
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There are other countries that actually were running a surplus and had fairly responsible fiscal policies but had weaknesses similar to what happened here with respect to their housing market or the real estate markets, and that has weakened their financial system.
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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.
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Although China runs a large trade surplus with America, it runs deficits with other Asian countries from which it imports capital equipment and components.
Another idea would be for rich countries to club together to buy part of the surplus southern African ivory before the trade ban is lifted.
As factories relocate to other countries, local wages will rise faster than they did in China because the potential pools of surplus labor are smaller.
While Brent is skewing the price, production from members of the Organization of Petroleum Exporting Countries, at around 31.4 million barrels a day in July, is comfortably in surplus of the 30.2 million barrels a day the market needs from OPEC, according to the International Energy Agency's most recent report on oil markets, published Friday.
IMF's analysis, is not due to shifts in domestic spending, but to changes in the manufacturing trade of these countries: America has had a widening trade deficit over much of that period, Japan a widening surplus.
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