For another thing, the buildup of foreign exchange reserves by Asian countries will, eventually, feed into domestic monetary expansion and lead to higher inflation. These imbalances will ultimately be resolved, either in an orderly, or in an abrupt, disorderly way. The question is, are current economic policies and today's international monetary order likely to facilitate an orderly resolution of the imbalances?
The SGP’s rules need to be tightened – in its preventive arm as well as in its corrective arm – and measures must be taken to ensure that member states abide by them. At the end of October the European Council adopted proposals to change the SGP. These changes would be an improvement compared to the status quo.