As the authorities try to bottle up these  4  BIS central bankers’ speeches  inflationary pressures, that puts further stress on their financial systems. There is also the risk that the needed exchange rate adjustment, when it does come, will be disorderly.
Resolving global imbalances requires that the United States and other deficit countries boost domestic savings in a timely and sustained manner. At the same time, surplus economies – particularly the emerging economies of Asia – need to undertake structural reforms to bolster internal sources of growth in order to reduce their reliance on external demand.