Somewhere between being seriously concerned and very nervous seems about the right attitude to have toward the international economy as Toronto fortifies itself, literally, for the G20 summit.
The international economy is beset by at least three imbalances. First, growth is much faster in developing countries than in developed ones, where unemployment is stubbornly high and overall output weak.
Second, some of this imbalance in growth is caused by China manipulating its currency, piling up huge surpluses on trade and current accounts with slower-growing Europe and the United States. This obdurate Chinese attitude will be on display in Toronto.
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