Global Imbalances (UNCTAD)

Global imbalances: The choice of the exchange rate-indicator is key, published by UNCTAD. “The path towards a more stable, balanced and equitable global economy received an important boost in recent days. In December 2010 in Seoul, the G-20 leaders acknowledged the need for a co-ordinated multilateral response to global trade imbalances and asked for “indicative guidelines composed of a range of indicators`…UNCTAC recommended the use of the Real Effective Exchange Rate (REER) as a practical and effective indicator to differentiate between sustainable and unsustainable trade imbalances.”