are likely to worsen again. without fundamental rebalancing, a full - fledged recovery of world economy may be a remote possibility. but rebalancing within a short period of time is no trivial task. it will require more proactive and concerted policy efforts than are currently being made. the recent expansionary macroeconomic policies undertaken in response to the sluggish economic growth are, as i see it, temporary measures, and not ultimate solutions to rebalancing. they serve to mature conditions for carrying out structural reforms that are essential to remedying the imbalances. in this regard, the following can be suggested as structural solutions for rebalancing. first, the current account surplus economies need to expand their domestic sectors, and thereby establish a virtuous circle between output, employment, and income. the current account deficit countries, on the other hand, need to nurture their manufacturing industries, so as to improve their bases for exporting. in individual countries, the imbalances between their real and financial economies, and between their manufacturing and service sectors, need to be corrected, while they must also work to reduce their debts and the disparities between income classes within their populations. to secure the impetus for sustainable growth, countries will also need to work together and combine their wisdom. the brisbane action plan, a set of comprehensive growth strategies bis central bankers ’ speeches presented by the g20 summit last weekend, is one result of such combined wisdom, arrived at after long discussion among member countries, and will be useful in the future rebalancing in each country. during this two - day conference, we will deal with the topics of rebalancing the economy in five separate presentations, as well as in a panel discussion participated in by former and current policymakers from major countries. i look forward to participants reaping many useful ideas here, and to this conference contributing to rebalancing and to the restoration of sustainable growth. thank you. bis central bankers ’ speeches

3 in such circumstances, society faces difficult questions of how best to fairly and justly promote equal opportunity. my purpose today is not to provide answers to these contentious questions, but rather to provide a factual see salvatore morelli, timothy smeeding, and jeffrey thompson ( 2014 ), “ post - 1970 trends in withincountry inequality and poverty : rich and middle income countries ( pdf ), ” irp discussion paper series 1419 – 14 ( madison, wis. : institute for research on poverty, march ). for income inequality in the past 100 years, see anthony b. atkinson, thomas piketty, and emmanuel saez ( 2011 ), “ top incomes in the long run of history ( pdf ), ” journal of economic literature, vol. 49 ( march ), pp. 3 – 71. for wealth inequality, see emmanuel saez and gabriel zucman ( 2014 ), “ wealth inequality in the united states since 1913 : evidence from capitalized income tax data, ” working paper and slides ( october, 14, 2014 ). for income inequality before 1913, see peter h. lindert and jeffrey g. williamson ( 2012 ), “ american incomes 1774 – 1860, ” nber working paper series 18396 ( cambridge, mass. : national bureau of economic research, september ). see alan b. krueger ( 2012 ), “ the rise and consequences of inequality in the united states ( pdf ), ” speech delivered at the center for american progress, washington, january 12. bis central bankers ’ speeches basis for further discussion. i am pleased that this conference will focus on equality of economic opportunity and on ways to better promote it. in my remarks, i will review trends in income and wealth inequality over the past several decades, then identify and discuss four sources of economic opportunity in america – think of them as “ building blocks ” for the gains in income and wealth that most americans hope are within reach of those who strive for them. the first two are widely recognized as important sources of opportunity : resources available for children and affordable higher education. the second two may come as more of a surprise : business ownership and inheritances. like most sources of wealth, family ownership of businesses and inheritances are concentrated among households at the top of the distribution. but both of these are less concentrated and more broadly distributed than other forms of wealth, and there is some basis for thinking that they may also play a role in providing economic opportunities to a considerable number of families