Multilateral strategy for addressing global imbalances and Europe’s contribution Having diagnosed the causes of global imbalances, what is the remedy? What can – and should – be done in order to bring about an orderly adjustment? I have indicated, expressing the majority view, that the root of the global current account imbalances lies mostly in the international allocation of savings and investment.
In addition, some of our community development offices conduct regional surveys to obtain a better understanding of the characteristics and financing needs of small business owners in their areas. You will hear more about their findings during the second panel today. The Federal Reserve also continues to encourage bank examiners to adopt a balanced approach to reviewing banks’ lending to small businesses.