Yellen Cites 'Asymmetry’ Of Surplus, Deficit Nations

Federal Reserve Board vice chairwoman Janet Yellen Friday called for cooperation to strengthen the international monetary and financial system, warning that the “asymmetry” between surplus and deficit nations “could threaten” economic recovery.

In particular, Yellen called for the adoption of more flexible exchange-rate systems, along with more open capital accounts and independent monetary policies, saying the lack of those features had contributed greatly to the recent financial crisis.

Yellen also warned that expanding government debt poses a “very serious” risk.

 

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