Eswar Prasad

China’s unwillingness to allow for significant currency appreciation even as its trade surplus continues to balloon will ratchet up tension.

There is a pervasive sense that the G20 has reached the limit of cooperative efforts towards rebalancing of the world economy.

This has been a recovery where there has been very little employment growth in even the economies that are doing very well.

[Without action], ballooning public debt in the advanced economies could become a major threat to domestic and global financial stability.

For lack of a better alternative, the IMF has to play an active role in trying to mitigate currency competition.