The accumulation of international reserves can offer a partial protective buffer, but it won’t necessarily be sufficient to avoid the repercussions on the real economy. BIS Review 82/2010  39  Europe and the United States would both benefit from a better functioning world economy, but they depend on decisions taken by other G20 countries.
The rigidity of the Chinese monetary regime is slowing down the adjustment of relative competitiveness and the recovery of the developed countries. In this area, Europe and the US have common interests, and are more likely to succeed if they pursue them in a joint and coordinated strategy. The experience of recent years shows that separate action is unlikely to succeed.