Financial Times FT.com

Bernanke warns on imbalance risks

By Krishna Guha in Washington

Published: October 19 2009 16:48 | Last updated: October 19 2009 19:36

Ben Bernanke said on Monday that it was “extraordinarily urgent” that the US and Asia adopt policies that prevent a revival of global economic imbalances as the financial crisis ebbs.

The Federal Reserve chairman warned that global imbalances – the big gaps between national saving, consumption and investment rates reflected in large trade deficits and surpluses – had helped cause the crisis and needed to be corrected.

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