By showing bold leadership now, China could start the much-needed adjustment of global economic imbalances.

ECONOMIST: China should loosen its currency peg��and quickly

Economists are increasingly concerned about the global imbalances which could undermine economic stability and growth.

ECONOMIST: Striving for co-operation | The

But, Sir Mervyn said, the most important message he took from Keynes right now was the need for countries to work together to tackle global economic issues - whether it's the crisis in the eurozone or the massive financial imbalances that helped cause the crisis in 2008, and could yet come back to bite us.

BBC: Masters of money: John Maynard Keynes

Put simply, we risk slipping back into the old imbalances that contributed to the economic crisis in the first place and which threaten global recovery.

WHITEHOUSE: G20 Summit Presidential Press Conference

The currency war is closely linked with another theme that has been troubling many economists for several years, that of global economic imbalances.

BBC: Currency war's key battlegrounds