Structural Booms

A Balanced Look at Sino American Imbalances

Imbalances are not solely the result of irresponsible policies.

This will not correct the imbalances that exist today.

These structural impediments cannot be removed.

andyxianwong sees structural flaws in the proposal

This round was supposed to redress those imbalances.

Yes, by our standards, China s imbalances are unstable and unsustainable. 160

But we also need other structural measures.

In turn, this allows unsustainable imbalances to build up, leading to an inevitable crash.

If one looks at multilateral trade imbalances, the US stands head and shoulders above all others.

Negotiators will also have to overcome significant structural obstacles.

But longer term structural issues are weighing down labor markets as well.

Likewise, competitiveness losses have been partly reversed as wages have lagged productivity growth, thus reducing unit labor costs, and some structural reforms are ongoing.

Second, domestic de leveraging dynamics are aggravating other structural impediments.

Structural factors go a long way to explain this deficiency.

France urgently needs structural reforms and thus a strong government.

Meanwhile, the types of structural changes that Argentina needs have not been made.

Structural and competitive impediments to growth have been largely ignored.

And never mind growth enhancing structural reforms.

We are determined to press ahead with the structural reforms needed to succeed.

What the best structural reforms actually are remains a matter for debate.

Undetected imbalances and systemic risk make fiscal policies seem prudent when they are not.

In every case, these imbalances were fueled by easily identifiable periods of euphoria and sudden asset prices increases.

But the key issues lingering in the minds of the G 20 leaders will be exchange rates and global imbalances.

Structural reforms, to root out corruption and crony capitalism, were doubtless overdue.

Structural barriers do not represent the only problems of access to treatment in the health care system.

Fiscal discipline remains essential, as are deep structural reforms.

What is needed is not structural reform within Greece and Spain so much as structural reform of the eurozone s design and a fundamental rethinking of the policy frameworks that have resulted in the monetary union s spectacularly bad performance.

For, unless today s global imbalances are redressed, the next crash will be upon us before we have recovered from this one.

The imbalances specific to underdevelopment create opportunities that policymakers can seize on.

In fact, however, exchange rates will change and need to change in order to shrink the existing trade imbalances.

Commercial banks found it advantageous to accumulate weaker countries bonds to earn a few extra basis points, which caused interest rates to converge across the eurozone.

In the past, foreign exchange markets paid less attention to structural factors.

Germany, struggling with the burdens of reunification, undertook structural reforms and became more competitive.

A weak German economy makes the necessary structural adjustments in the eurozone periphery much more difficult.

The stock imbalances include large and rising public and private debt as a share of GDP.

The Greek saga shows that this system cannot control destabilizing imbalances quickly enough to ward off major crises.

Today, we are seeing the structural changes that we had hoped to see years ago.

For all of China s long term structural problems, it is not exactly slipping into recession.

Europe needs structural reforms and tighter fiscal management, not inflation.

There are structural reasons for the eurozone economy s slow recovery from the financial meltdown in its periphery.

Fifth, structural reforms are still occurring at a snail s pace, holding back potential growth.

If structural reforms are not done right, the Brisbane Summit will come to be regarded as a failure.

For instance, they can pile up hidden imbalances in supply or demand, which may suddenly be revealed when a threshold is breached. This is true of so called knockout options, used in currency hedging.