Trans Pacific Rebalancing

The ongoing global financial crisis is forcing adjustment to trans-Pacific payments imbalances, accompanied by an excessive contraction of economic activity and rising unemployment. This is clearly not a desirable way to reduce imbalances.

A conference on Trans-Pacific Rebalancing, held on 3–4 March at ADBI, discussed factors that would achieve balanced, sustainable growth in Asia and the US, and the policy implications of these adjustments in both regions. Participants included experts from ASEAN economies, the US, India, Japan, newly industrializing Asian economies, and the PRC, as well as a broader audience of government officials from Asia and the US, multilateral agencies, and academia.

Participants agreed that global rebalancing would not occur automatically and that appropriate policy actions would be crucial. The conference highlighted the need for international collective action in this area given the importance of the global rebalancing issue in the context of achieving strong and sustainable growth.

Read a more detailed summary of this event.