fed speech, 2006-03-09
If one were confident that observed imbalances simply reflected a more efficient allocation of the world's stock of saving to its most productive uses, that relative prices adjust freely in response to changing fundamentals and that economies are flexible and agile in adapting to those changes, then we might also reasonably expect these imbalances to resolve themselves through smooth and gradual adjustments in relative prices and flows of goods and services.
Sentiment: neutral
Topic: mp_economic_activity