StraightTalk®–Are we there yet?

Much has been made of what many have perceived as the “global imbalances” that caused the 2008–2009 crisis in the global economy. Even if the rebalancing that has occurred since then has been unintended and the result of slower growth, corrections to some of the imbalances in savings, consumption, and growth potential have gradually taken place around the world. The question is whether this rebalancing has also helped adjust structural deficiencies and distortions in critical markets for capital and labor to create a more sustainable growth environment.

The evidence reviewed in this issue of StraightTalk shows that a global rebalancing provides incentives for structural adjustments, but policies to guide them are also important, as a lack of clarity about the direction and outcomes of those policies can add significantly to uncertainty about the recovery and elevate the risk of shocks. Risk management can help move structural adjustments forward and increase global recovery more rapidly than currently perceived.