A few thoughts on the global situation

The global scene is marked by three features: first, strong GDP growth in the United States coupled with a large current-account deficit; secondly, subdued economic growth in Europe - hindered by insufficient structural reforms and a balanced position in terms of the current account; and thirdly a spectacular economic expansion in East Asia coupled with high current-account surpluses and growing international reserve accumulation. The following table gives a summary of present current-account im