This is all the more the case as some surplus economies continue to accumulate large excess reserves while maintaining fixed exchange rate regimes which – as I have argued – were at the core of many crises in the past, including the most recent one.
Projections by the IMF actually show that we are currently already past the low point of external imbalances, both in terms of the US current account deficit and the surpluses of major emerging economies. Foreign exchange reserves of emerging economies are currently already above their peak levels prior to mid-September 2008 when the turmoil erupted into a full-blown crisis.