Understanding Global Imbalances: Revelation, not Revolution - VP Thematic | Research

How we got here: Policy distortions built record imbalances (Chinese under-consumption, US over-consumption & surplus countries’ overexposure to USD assets)
Resolving imbalances: Lessons from Nixon, Reagan & the GFC
The path ahead: Something’s got to give with some combination of “US saves more, world consumes more, or weaker USD”.
Investment implications: Undervalued Asian currencies have the furthest to rise, LatAm & India to benefit as global trading system adapts, Real assets & re-shoring equities as winners