Still, it is true that a reduction of the current account deficits of some countries may, through the mechanics of the operation of a monetary union, imply a reduction of surpluses in other countries. From a euro area-wide point of view, wage moderation in the deficit countries is a negative inflationary shock to the area as whole.
The Three Great Challenges Ahead 2/5  BIS central bankers' speeches  Even as I say this, the evolving operating environment is beset with what I refer to as the three great challenges that could potentially derail our growth trajectory. First is the imbalance or great divergence in global growth.