bernake speech
WASHINGTON (AP) -- The United States and other countries must work together to right a skewed pattern of trade and investment around the globe, a move that would help worldwide economic stability, Federal Reserve Chairman Ben Bernanke suggested Tuesday.
So-called "global imbalances" occur when countries such as the U.S. run up bloated trade deficits, while other countries, such as China and oil-producing nations, produce big trade surpluses. The International Monetary Fund has been leading efforts over the years to reduce lopsided trade and investment patterns.
As for prospects of fixing the problem, Bernanke said, "Signs of progress have appeared but ... most countries have only just begun to undertake the policy changes that will ultimately be needed." He spoke at a conference in Berlin. Copies of his remarks were made available in Washington.
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Is this at all possible? What do other countries have to gain by importing inferior and costlier American products? If the US was the one with the huge trade surplus wouldn't everyone be thrilled?
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