But there are many policies that are good, and that can be made better. Much better. I would like to share with you three examples. First: Globalization and the North American Free Trade Agreement In the many decades after World War II, in what is often called the Pax Americana, the world’s economies experienced a wave of globalization.
Ironically enough, the key to changing global savings and investment flows rests with each country doing what is right for itself. If all countries followed a framework of appropriate domestic policies, this would go a long way towards defusing the danger posed by global imbalances. These policies go well beyond the responsibilities of a central banker.