These measures will not be undertaken solely to satisfy the ethereal principle of global rebalancing enunciated at countless meetings in international policy circles; instead, these measures will be undertaken because they are in the best interests of the countries themselves.
In particular, more flexible exchange rates will help domestic demand fill in the gap left once foreign demand falls back to a more sustainable level. More flexible exchange rates also provide domestic policymakers greater scope to focus on domestic goals of full employment and price stability.