Washington, October 19: US Federal Reserve Chairman claims the global financial crisis of the past two years has shown the need to improve regulation and to deal with global imbalances.
“The crisis has highlighted the need for many policy reforms that range from improving financial regulation to addressing global imbalances,” Ben Bernanke said Sunday at an Asia economic conference in Santa Barbara, CA.
Bernanke also said the global downturn highlighted the strong links that exist in the economies of the US, Europe and Asia.
The recent recession has made policymakers “keenly aware of important linkages globally between America, Europe and Asia,” he said.
The US has been recently trying to get world leaders to agree on a new framework to deal with the global imbalance it claims contributed to the financial crisis.
The new framework would mean shifting to more savings in debtor countries such as the US and more consumption in China and other major emerging economies.
Meanwhile, China blames the financial downturn on a lack of regulation and the risky use of leverage in developed countries, rather than global imbalances.
—–Agencies