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

The euro s recent sharp rise has made this competitiveness problem even more severe, reducing growth further and making fiscal imbalances even larger.

And yet many policymakers are insisting on immediate action to rectify not only fiscal deficits, but also trade imbalances and banks balance sheet weaknesses.

After it was revealed that successive governments had misled their way to mammoth fiscal deficits and macroeconomic imbalances, Greece lost access to international bond markets.

These imbalances could be reduced by the US using fiscal rather than monetary stimulus, and China allowing the renminbi to appreciate in an orderly manner.

Perhaps a stronger fiscal union, a central ministry of finance, and debt sharing would reduce the difficulties and imbalances enough to allow the euro to survive.

Not surprisingly, our survey group ranked chronic fiscal imbalances second among 50 global risks that are most likely to manifest themselves over the next ten years.

Given the large global imbalances, effective macroeconomic coordination among leading countries (both developed and developing) appears critical for a smooth resolution of the major current account and fiscal deficits.

Balancing the World s Imbalances

Global Imbalances without Tears

Will Global Imbalances Return?

In other words, we should leverage imbalances of one kind to redress imbalances of the other kind.

Only a combination of these options would allow Arab economies to create jobs in the short term, while avoiding the risks of destabilizing fiscal imbalances or a lack of financing for private sector investment.

A Requiem for Global Imbalances

In Praise of Global Imbalances

These imbalances could be reduced by the US using fiscal rather than monetary stimulus, and China allowing the renminbi to appreciate in an orderly manner. But domestic politics in both countries stand in the way.

In other words, said Singh, we should leverage imbalances of one kind to redress imbalances of the other kind.

Humpty Dumpty and Global Financial Imbalances

If successful and, so far, China has almost always surpassed even its own high expectations these adjustments may impose enormous strains on a global economic system that is already unbalanced by America s huge fiscal and trade imbalances.

A Balanced Look at Sino American Imbalances

But China s economic imbalances are also stupendous.

From Global Imbalances to Effective Global Governance

Third, global imbalances led to cheap money.

The fiscal deficit must now be redressed resulted not just from internal financial imbalances, but also from a political system that for too long time has been in denial of reality, allowing the country to live beyond its means.

It will encourage the reemergence of global imbalances.

One priority is to reduce global payments imbalances.

Even the eurozone s macroeconomic imbalances largely went unnoticed.

The approach to the issues featured many imbalances.

But, if all countries simultaneously attempt to improve their fiscal or external balances by cutting spending and raising taxes, all will fail, because each country s austerity implies less demand for other countries output, in turn perpetuating both domestic and external imbalances.

Those of us who know that long run fiscal imbalances are likely to end in disaster high inflation, deep recession, financial crisis, or all three scratch our heads in bemusement at the priorities of George W. Bush and his administration.

If progress is not made in reducing the projected fiscal imbalances and limiting the growth of bank reserves, reduced demand for dollar assets could cause the dollar to fall more rapidly and the interest rate on dollar securities to rise.

This will not correct the imbalances that exist today.

It would do nothing to correct its structural imbalances.

A determined effort by emerging market countries that have external surpluses to expand imports from the US (and Europe) would do far more to address the global trade imbalances over the long run than changes to their exchange rates or fiscal policies.

In practice, however, there is no global leadership and severe disarray and disagreement among G 20 members about monetary and fiscal policy, exchange rates and global imbalances, climate change, trade, financial stability, the international monetary system, and energy, food and global security.

A multipolar system may help better address global imbalances than the current dollar based system, which simply perpetuates large imbalances as countries pile up large dollar reserves.

Indeed, the question is not so much whether the global system will endure the imbalances spawned by China, but how severe those imbalances will prove to be.

The peripheral countries suffer from severe stock and flow imbalances.

Such institutions can create, reflect and reproduce imbalances of power.

Meanwhile, the state lurches from fiscal tragedy to fiscal farce.

It has not resolved the fundamental economic imbalances between eurozone countries.

The UN and others have long drawn attention to global imbalances.

They are also a big factor behind the global trade imbalances.

The imbalances in the US are the mirror image of China s.

Fiscal consolidation was not, however, the result of formal fiscal rules.