Global imbalances are the result of many factors, including investment and saving behavior across different countries and the systems that determine these, with inflexible foreign exchange systems being another. In terms of the flow of funds, imbalances are maintained as the abundant funds accumulating in emerging economies and oil producing countries are invested overseas, principally in the United States.
To address this problem, it is of course essential that the economies concerned take measures to improve the balance of their  4  BIS Review 22/2008  investment and saving. At the same time, allowing market mechanisms to operate under more flexible foreign exchange systems will contribute to the balanced and sustained growth of the world economy.