Perception of global imbalances as a problem way off base

ONE of the perennial themes in reports from global economic institutions such as the International Monetary Fund and the Organisation for Economic Co-operation and Development is global imbalances perceived as surpluses and deficits on the current account among major economic powers.

Unhesitatingly and continually, the view is taken that imbalances are bad for the economy. It has become almost an obsession to offer policy options to reduce or remove imbalances cha…