Ben Bernanke said yesterday that it was “extraordinarily urgent” that the US and Asia adopt policies that prevent a revival of global economic imbalances as the financial crisis ebbs.
The Federal Reserve chairman warned that global imbalances – the big gaps between national saving, consumption and investment rates reflected in large trade deficits and surpluses – had helped cause the crisis and needed to be corrected.
Mr Bernanke said the US must establish “a sustainable fiscal trajectory anchored by a clear commitment to substantially reduce federal deficits over time”.
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