Another possible imbalance that continues to receive a lot of attention around the world is the large and still rising U.S. current account deficit. That deficit is, of course, simply the other side of the massive capital flows to the United States to take advantage of the higher perceived return there.
The most benign adjustment would be for the euro area and other countries to benefit from an acceleration in productivity, much as the United Sates has enjoyed. This would lead to a reversal of capital flows and depreciation of the dollar, with income and relative price effects contributing to a moderation in the U.S. current account deficit.