Fond memories of the successful 1980s adjustment of global trade imbalances have shaped much of the thinking about escape routes this time round.

In 1985 the US “twin” current account and fiscal deficits consumed global economic discussions. Just as now, the worry was that a disorderly adjustment would derail the global economy. Yet by 1990 the US current account had been reduced from its peak of 3.4 per of gross domestic product to a manageable 1.4 per cent.