If the current constellation of international current account positions is ultimately unsustainable, an international macroeconomic adjustment is required which will have a global impact. One view with regard to the reabsorption of current account imbalances focuses on the role of real exchange rate adjustment via inflation differentials, nominal exchange rate changes, or both.
Return to text 12 3/4  BIS central bankers' speeches  12 See Quarles, note 2. Return to text 13 Randal K. Quarles, “Global in Life and Orderly in Death: Post-Crisis Reforms and the Too-Big-to-Fail Question”  (speech at the Exchequer Club, Washington, D.C. (via webcast), July 7, 2020). Return to text  4/4  BIS central bankers' speeches