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Workshop on Policy to Reduce Global Imbalances

Organized jointly by the Peterson Institute, Bruegel, and the Korea Institute for International Economic Policy (KIEP)

Peterson Institute for International Economics, Washington, DC

February 8-9, 2007


Participants in a February 2007 workshop, held in Washington and cosponsored by Brussels-based Bruegel, Seoul-based Korea Institute for International Economic Policy (KIEP), and the Peterson Institute, outlined how an orderly reduction in global imbalances can be achieved. They presented estimates of the exchange rate implications of current account adjustment scenarios in which the US current account deficit narrowed to 3 percent of GDP in the medium term and the world growth rate was unchanged.

The conclusions of the workshop are summarized in Policy Brief 07-4: Global Imbalances: Time for Action. This report was release on March 27, 2007, at a meeting at the Institute.

Event Materials

Workshop Papers

Introduction [pdf]
John Williamson, Peterson Institute

The Target Current Account Outcomes [pdf]
John Williamson, Peterson Institute

Internal and External Current Account Balances in the Euro Area [pdf]
Alan Ahearne, Jürgen von Hagen, and Birgit Schmitz
    Comment by Desmond Lachman [pdf]

How Large a Dollar Adjustment to Reduce the US Imbalance? [pdf]
Martin Neil Baily, Peterson Institute
    Comment by Barry Eichengreen [pdf]

Sustainable Adjustment of Global Imbalances [pdf]
Ray Barrell, Dawn Holland, and Ian Hurst

World Consistent Equilibrium Exchange Rates [pdf]
Agnès Bénassy-Quéré, Amina Lahrèche-Révil, and Valérie Mignon 
    Comment by Bernd Schnatz [pdf]
Estimating Reference Exchange Rates [pdf]
William R. Cline, Peterson Institute

Will Japan Turn to a Deficit Country in the Near Future? [pdf]
Koichi Hamada

Methodology for CGER Exchange Rate Assessments [pdf]
Jaewoo Lee, Gian Maria Milesi-Ferretti, and Luca Ricci

BEER Estimates and Target Current Account Imbalances [pdf]
Ronald MacDonald and Preethike Dias 
    Comment by Bernd Schnatz [pdf]

Oil and Global Adjustment [pdf]
Brad Setser
    Comment by Trevor Reeve [pdf]

GSDEER and Trade Elasticities [pdf]
Thomas Stolper and Monica Fuentes 
    Comment by Bernd Schnatz [pdf]

The Exchange Rate Adjustment in the Course of Global Rebalancing: The Case of Korean Won [pdf]
Doo Yong Yang

Global Imbalances: China’s Perspective [pdf]
Yu Yongding

Concluding Remarks

Comments [pdf]
Yung Chul Park

Concluding Speech [pdf]
Yu Yongding