fed speech, 2006-01-23
If we were confident that the imbalances we observe simply reflected a more efficient allocation of the world's stock of saving to its most productive uses, if relative prices adjusted freely in response to changing fundamentals, and if economies were flexible and agile in adapting to those changes, then we might also reasonably expect these imbalances to rise and fall through smooth and gradual adjustments in relative prices and flows of goods and services.
Sentiment: neutral
Topic: mp_economic_activity