As I mentioned in the beginning, the solution to the issue of external imbalances seems relatively simple if considered in isolation: just reverse the existing divergent trends in saving and investment ratios between the countries involved. It is important, however, to recognize that the global imbalances also reflect cross-country differences in economic structures and real resources, which give rise to differing policy interests.
10 H. Rey, “Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence,” London Business School, CEPR and NBER, August 2013. -9around: a country may need to achieve a certain level of financial system soundness and standard of governance before it can fully reap the benefits of capital mobility.