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But the markets should pay closer attention to a structural problem, said Stephen Roach, chief economist at Morgan Stanley.
"The big issue they are missing is that imbalances matter," Mr. Roach said. "We have massive trade and budget deficits in the United States and huge surpluses in Asia. I am not trained to wave a wand over these huge imbalances and say this is the way the world works now."
If Mr. Roach had his way, the leaders would focus on two things: "The United States needs to be called to task for running reckless monetary and fiscal policies and fostering an environment that has allowed consumers to live well beyond their means. And the rest of the world has to be called to task for failing to stimulate domestic demand."
- market week, "Will the G-8 Look Beneath The Surface?" new york times June 6, 2004
posted June 06, 2004 in politics, print. 20022001