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China has talked the talk of structural rebalancing for nearly six years.
In a nutshell, Mr Dudley tells us that aggressively easy monetary policy is essential to both the cyclical recovery and to a structural rebalancing of the American economy away from consumption and toward exports.
But bolstering the power of its consumers to full potential poses a long-term challenge for China and requires a structural rebalancing of economic growth.
I argued that urgent action was needed on the structural rebalancing agenda.
That critique gave rise to the pro-consumption 12th Five-Year Plan enacted in early 2011, which provided a broad framework of structural rebalancing.
Similar(55)
China has to go through significant structural changes to rebalance its economy.
"Symmetrical rebalancing" requires structural measures in stronger countries, such as allowing wages to catch up with productivity and adequate minimum wages to prevent in-work poverty.
Inflation has been too low for too long, financial markets are still fragmented, and structural gaps persist: these hinder rebalancing and substantial reductions in debt and unemployment," said the report.
He said that structural overhauls were contributing to a rebalancing of the E.U. economy, particularly where governments had undertaken the measures as part of their bailout agreements.
As the 10th anniversary of the start of the crisis approaches, a consensus is growing that escaping this low-growth low-inflation trap will require a rebalancing between monetary, fiscal and structural policies," he said.
Whether the effects of squandering money will last depends on the government's decision on whether to keep throwing money about.Next he discusses fundamental problems with the rebalancing notion China's economy has structural problems that cannot be easily solved by palliatives.
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