Such sales will be implemented in accordance with a framework communicated well in advance and will be conducted at a gradual pace. Because changes in the size and composition of the portfolio could affect financial conditions, however, any decisions regarding the commencement or pace of asset sales will be made in light of the Committee’s evaluation of the outlook for employment and inflation.
If deficit and surplus countries would choose to pursue policies based on their narrowest selfinterests, seeking to postpone inevitable structural changes, the problems of global imbalances – and their adverse effects – would be likely to persist. The only way to address the problem is international policy coordination.