Imbalances
IMF working paper suggests financial sector reform key to rebalancing Chinese economy
Reforms that lead to real interest rates rising and appreciate the real effective exchange rate would contribute to rebalancing growth in China toward private consumption, finds IMF research
IMF’s Shinohara urges emerging markets to rethink fiscal approach
Fund deputy managing director Naoyuki Shinohara says advanced economies must walk narrow path to address fiscal imbalances; emerging and developing nations should reconsider pace of adjustment
RBNZ reviews policy choices to tackle macroeconomic imbalances
Reserve Bank of New Zealand paper says policies that promote savings in the private and public sector can help overcome macroeconomic imbalances
Deficits are not always bad: RBA’s Debelle
Reserve Bank of Australia assistant governor of financial markets Guy Debelle says current account deficits are not always bad and do not necessarily equate to an imbalance
ECB paper on exchange rate misalignments
European Central Bank study identifies methods to improve policymaking under exchange rate imbalances and fluctuations in capital flows
IMF urges further Spanish reforms
IMF mission to Spain says authorities have implemented strong fiscal and structural reforms to aid recovery, but plans need to be strengthened
Bank of Finland highlights threat of dual imbalance in China
Bank of Finland study shows large external imbalances in China’s current and capital account risk creating asset bubbles
Sweden’s Ekholm not in favour of current account targets
Riksbank deputy governor Karolina Ekholm says central banks should not set targets for how large their deficits and surpluses can grow
FDI boosts external balances: IMF paper
IMF study shows central eastern and southeastern Europe region benefited from large foreign direct investment pre-crisis
RBNZ’s Bollard plays down benefits of macroprudential tools
Reserve Bank of New Zealand governor Alan Bollard says expectations that macroprudential instruments will bolster financial system must be realistic
Trichet urges rules-based approach to excessive deficit reforms
European Central Bank president Jean-Claude Trichet calls for use of strict rules to adhere to excessive deficit reduction procedure
China’s financial system, not renminbi, source of imbalances: St Louis Fed paper
St Louis Federal Reserve study says revaluation of renminbi will not address source of trade imbalances and may prove counterproductive
ECB’s Bini Smaghi on causes of euro-area imbalances
European Central Bank executive board member Lorenzo Bini Smaghi says lack of labour and product market reforms created imbalances in euro area
Buba paper covers US drivers of imbalances
Bundesbank study says household and firm behaviour can explain why decline in US productivity was a driver of global imbalances
Norges Bank’s Nicolaisen gives advice on rate-setting in turbulent times
Norges Bank director of monetary policy Jon Nicolaisen on setting monetary policy in volatile economic times
Imbalances could treble in next two decades: Bank's Haldane
Bank of England executive director Andy Haldane charts course of global imbalances, pointing to trends likely to widen them
Brazil raises reserve ratio to ease impact of capital inflows
Central Bank of Brazil lifts reserve requirement ratio in bid to stem inflationary pressures resulting from capital inflows
Iceland at economic crossroads: Guðmundsson
Central Bank of Iceland governor Már Guðmundsson says Iceland must now reconnect with global markets to build solid foundation for growth
RBNZ’s Bollard: external shocks and internal rebalancing will prolong recovery
Reserve Bank of New Zealand governor Alan Bollard says Western countries have to contend with both external shocks and internal rebalancing
DSK: surplus countries can rebalance growth
IMF managing director Dominique Strauss-Kahn says addressing global imbalances requires shift in surplus countries’ growth drivers
Korea’s Kim says volatile capital flows can be suppressed
Bank of Korea governor Kim Choong-soo says sound macroeconomic policies can mitigate volatile capital flows
King demands collaboration
Bank of England governor Mervyn King says countries must reach collective solution over global imbalances or risk crippling the global economy through protectionist policies
BoK’s Kim: Asia needs stronger domestic demand
Bank of Korea governor Kim Choongsoo says domestic demand can aid structural imbalances in Asia
IIF calls for accord to fix imbalances
Institute for International Finance (IIF) says major economies must broker agreements on critical macroeconomic and exchange-rate issues