Are we there yet?

Much has been made of the perceived “global imbalances” that caused the 2008–2009
global economic crisis. 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. A global rebalancing may provide incentives for structural adjustments, but policies to guide them are also important.