In the meantime, the US net foreign position would continue to deteriorate, but this is seen as sustainable. Therefore, in both cases, no specific action to correct the imbalances is necessary on the part of advanced countries.
However, the crisis has underlined that there are not only two axes of interaction – monetary policy vis-à-vis fiscal policy, and monetary policy vis-à-vis financial stability – but that there is a complete interaction triangle, including the fiscal-policy financial-stability nexus as a third important edge. The challenge for policy makers arises as the poles of this triangle are all endogenous to one another.