While the financial crisis has been associated with a narrowing of imbalances, recent data suggest that this development has started to go into reverse, at least partially. In view of their global importance, I would like to focus my remarks today on these global imbalances, and I am looking forward to discussing these issues with this global forum afterwards.
Current account imbalances are not a bad thing per se. On the contrary, from the viewpoint of a single national economy there may be good reasons for temporary surpluses or deficits. A surplus or deficit merely reflects a discrepancy between domestic savings and investment.