Thus, countries hit by financial crises that are linked to domestic financial imbalances should address those imbalances, such as large fiscal deficits inadequate functioning of the banking sector due to lack of banking regulations and rigidities of exchange rates.

Deeper fiscal surveillance should be matched by broader economic surveillance, especially since current account imbalances have become more acute during the crisis. The European Commission is now working on extending the focus of surveillance beyond fiscal policy so that we can identify risks stemming from macroeconomic imbalances or changes in competitiveness and address them before they become entrenched.

Emotional imbalances.

Given the large global imbalances, effective macroeconomic coordination among leading countries (both developed and developing) appears critical for a smooth resolution of the major current account and fiscal deficits.

The efforts to implement more prudent fiscal and monetary policies designed to reduce macroeconomic imbalances also contributed to lower inflation in several countries and the return of investor confidence.

Inequities and imbalances

Balancing the World s Imbalances

Global Imbalances without Tears

Will Global Imbalances Return?

A Requiem for Global Imbalances

In Praise of Global Imbalances

Most major countries fiscal deficits nowadays reflect the recent collapse of tax revenues that followed the growth downturn, as well as very costly financial sector bailouts. And yet many policymakers are insisting on immediate action to rectify not only fiscal deficits, but also trade imbalances and banks balance sheet weaknesses.

Humpty Dumpty and Global Financial Imbalances

Perhaps a stronger fiscal union, a central ministry of finance, and debt sharing would reduce the difficulties and imbalances enough to allow the euro to survive. Perhaps adjustment will start to work just in time.

(b) Policies to raise savings should include redressing fiscal imbalances, addressing urgently the problems of weak and unviable state enterprises, and providing private savers appropriate incentives and opportunities for savings and efficient financial intermediation facilities

Fiscal Challenges and Fiscal Follies

A Balanced Look at Sino American Imbalances

From Global Imbalances to Effective Global Governance

Inequities and imbalances in international economic structures

Regional imbalances and weaknesses should be addressed.

The approach to the issues featured many imbalances.

Global growth remains slow and, with monetary and fiscal policies having a limited impact on economic recovery, governments have neither the resources nor the courage to push for major projects. Not surprisingly, our survey group ranked chronic fiscal imbalances second among 50 global risks that are most likely to manifest themselves over the next ten years.

But ERM members monetary policies remained home grown, which, no surprise, occasionally led to fiscal imbalances. When capital markets smelled a problem among ERM members, they invariably shorted the most vulnerable currency and pushed that country s authorities to devalue.

While many countries had continued to improve their macroeconomic policy, most remained vulnerable to global economic shocks and had limited capacity to conduct counter cyclical monetary and fiscal policies to deal with domestic imbalances and the adverse impact of such shocks.

It would do nothing to correct its structural imbalances.

Such institutions can create, reflect and reproduce imbalances of power.

The center of fiscal conservatism is Germany, while Anglo Saxon countries are still drawn to John Maynard Keynes. This division is complicating matters enormously, because close international cooperation is needed to correct the global imbalances that remain at the root of the crisis.

So there is an upside to today s massive US fiscal and current account deficits. The structure of global imbalances, with the US the big borrower and emerging markets the creditors, presents a rare opportunity to finance a change in governance at the IMF.

First, there is the long standing litany of policy responses needed to deal with the global trade imbalances. These include greater fiscal discipline in the US, greater reliance on domestic demand in both Europe and Asia, and more flexible exchange rates in Asia.

Fiscal Follies

Fiscal Year

Fiscal yeara

What's fiscal ?

And here was the clincher By committing themselves to fiscal tightening, finance ministers gave themselves scope for some fiscal loosening. Proclaiming fiscal virtue enabled them to practice fiscal vice.

BERKELEY The start of 2014 marks ten years since we began fretting about global imbalances, and specifically about the chronic trade and current account imbalances of the United States and China. A decade later, we can happily declare that the era of global imbalances is over.

30. As a matter of accounting, external imbalances have internal counterparts.

fiscal year 2000 2001 to the fiscal year 2002 2003 (table 5).

The German model for resolving the debt crisis and returning to internal or external balance relies on fiscal consolidation and structural reforms for the deficit countries. But, if all countries simultaneously attempt to improve their fiscal or external balances by cutting spending and raising taxes, all will fail, because each country s austerity implies less demand for other countries output, in turn perpetuating both domestic and external imbalances.

In the US, slower private sector deleveraging given the fiscal stimulus from the extension of unemployment benefits for 13 months, the payroll tax cut, and maintenance of current income tax rates for another two years could lull policymakers into assuming that relatively large fiscal and current account imbalances can continue indefinitely. This could generate financial strains over the medium term and protectionist pressures in the short term.

Just as global imbalances were not built up overnight, nor will they be solved quickly. The aim of multilateral consultation was not to seek to solve imbalances in one fell swoop, but rather to solidify agreement on a medium term approach that could reduce imbalances gradually over time.

Europe s Fiscal Wormhole

America s Fiscal Isolationism

Fiscal Apocalypse Now

Germany s Fiscal Follies

Current fiscal year