There is a great deal of scepticism about how successful the two main areas outside the United States – Japan and the Euro area – will be in this endeavour. It is in this general context that some central banks have reduced interest rates over the past few days. As you know, we did not.
And since our world economy is a closed one—Mars missions notwithstanding, we still don't export to other planets—we would see savings increase in one part of the world to offset increases in domestic demand elsewhere. Why worry? In this ideal world where markets operate efficiently, without distorting policy interventions, imbalances can resolve themselves in a smooth and orderly manner.