In the meantime, the US net foreign position would continue to deteriorate, but this is seen as sustainable. Therefore, in both cases, no specific action to correct the imbalances is necessary on the part of advanced countries.
Finally, a stark corollary of the global assets shortage story is that, as long as the forces underlying excess saving in the periphery persist and the United States retains its undisputed global financial leadership, (welfare-enhancing) global imbalances should be the norm.