Bernanke Warns of Money-Flow Imbalances Between Nations |
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February 18, 2011
As the global economy recovers from the recession, imbalances in flows of money between nations could pose new threats to financial stability and the recovery if unchecked, the Federal Reserve chairman, Ben S. Bernanke, said Friday.
As the global economy recovers from the recession, imbalances in flows of money between nations could pose new threats to financial stability and the recovery if unchecked, theFederal Reserve chairman, Ben S. Bernanke, said Friday.
At a central banking conference before a meeting here of the Group of 20, Mr. Bernanke said that while the global financial crisis was receding, "capital flows are once again posing challenges for international macroeconomic and financial stability." He added, "They reflect the two-speed nature of the global recovery as emerging market growth far outstrips growth in advanced economies."
Mr. Bernanke called on countries that export more than they import to allow their currencies to reflect its overall economic performance, and urged those with large trade deficits to increase their savings and put their fiscal policies on more sustainable path.
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