But more importantly, they are undermining the efficiency of their own domestic economy, and interfering with the resolution of imbalances. Because of this and other impediments, global imbalances are growing, and this is increasing the risk of a disorderly correction at some point down the road.
We can now begin evaluating the effects of the reforms. Have they achieved their objectives? Do the reforms bring with them unintended side-effects? Under Germany’s G20 presidency, which will come to an end in the next few days, we have made considerable progress. Together with our international partners, we have agreed on a framework for a structured evaluation of the reforms.