The development strategies of countries such as China and other Asian nations, to be successful, must be compatible with the pattern of adjustment in global demand that is required by the consumption, saving, and investment decisions made by market participants everywhere. Conclusion The global economy seems to be facing major adjustments in several dimensions simultaneously.
Successful adaptation to changing circumstances will require flexibility on several fronts. No one can anticipate how events will unfold - the evolving geography and technology of the production of goods and services, the shifting balances between spending and producing as current accounts change. My fear is that poorly formed diagnoses and incorrect policy prescriptions will have unintended adverse consequences for our economy.