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While the traditional approach to the adjustment of international imbalances assumes industrialized countries at a similar level of development and with similar production structures, such imbalances have historically been the result of a process of catching up by late-industrializing developing...
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, lower risk assets abroad and also would eliminate pressures on the People's Bank of China, allowing for more rapid …China's major imbalances include trade and capital account surpluses and a large annual build-up of international … reserves. China has a capital account surplus reinforcing the accumulation of foreign exchange reserves, mainly U.S. dollar …
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and the circumstances in which significant imbalances emerge at the global (US-China) level. Increasing external …
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