But in the discussion on macroeconomic imbalances, there are often calls to force the core countries to actively reduce their current account surpluses – through interventions in the wage discovery process, for instance, or by way of additional fiscal stimuli – so as to bring relief for the deficit countries.
*  *  *  As you know, last week the Reserve Bank released details of the Committed Liquidity Facility (CLF) that forms part of Australia’s implementation of the Basel III liquidity reforms.