In addition, measures to strengthen export sectors, while maintaining open markets, would also help to reduce current account deficits. The G20 recently made an attempt to address the problem of imbalances at the political level: in September 2009 the “Framework for strong, sustainable and balanced growth” was launched. This framework includes a pledge to “promote more balanced current accounts”.
We must respond to these changes by further strengthening our efforts at maintaining financial system stability with adequate rules and regulations while avoiding over-regulation. It happened after Enron with Sarbannes Oxley which tended to go overboard without, some would say, achieving sufficient strengthening of the system – the results of which we are seeing today.