By 1981, Japan achieved both internal and external equilibrium; exports and imports roughly balanced at sixteen percent of the gross national product. However, within the country, there was concern that the growth in the government, accompanied by raising budget deficits, would make it...

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-denominated assets. Usually, a sustainable fixed or...