But we also went through road blocks and speed bumps along the way. Now, the global financial and economic turmoil presents our economies with, perhaps, our biggest challenge yet. The current crisis has been described as a “crisis unlike any we have seen in our lifetime”.
Managing currency tensions will require a shared understanding on keeping exchange rates aligned to economic fundamentals, and an agreement that currency interventions should be resorted to not as an instrument of trade policy but only to manage disruptions to macroeconomic stability. Capital flows That takes me to the second facet of global imbalances – return of lumpy and volatile capital flows.