Interesting interview with the IMF's Chief Economist Olivier Blanchard in the Fund's IMF Survey magazine. He says the two-speed global economic recovery is likely to dominate 2011, with weak growth in advanced economies barely enough to bring down unemployment and emerging markets facing the challenges of success, including how to avoid overheating and handle strong capital inflows.
In an assessment of the global economy at the end of 2010, and the prospects for 2011, Blanchard said that countries should continue to focus on rebalancing their economies in the coming year, including structural measures and exchange rate adjustments.
“Without this economic rebalancing, there will be no healthy recovery,” he says. Read the full interview here.