“A concern is that after some partial reduction induced by the crisis, global imbalances are starting to widen again,” Trichet said, according to the text of a speech prepared for an award ceremony for receiving the Global Economy Prize 2011 by the Institute for World Economy in Kiel, northern Germany.
Such imbalances raise challenges for international monetary and fiscal co-operation, Trichet said, referring to imbalances as “one of the main challenges facing the global economy and the world community.”
“The global economy has a lot of homework to do if it is to address these challenges,” Trichet said.
He said the euro area does not contribute to global imbalances, pointing to projections by the International Monetary Fund which see the region’s current account broadly balanced this year and up to 2015.
Trichet added: “The euro area has a significant stake in effective global rebalancing, notably through sounder domestic policies worldwide which, in turn, would contribute to global external stability.”
The euro’s international role underscores a high degree of stability, he added.
