Global Imbalances: Lessons from Japan’s Experience for Rethinking Economic Adjustment

The EHESS France-Japan Foundation, the Banque de France and the Louis Bachelier Institute brought together researchers, financial institutions and international representatives to examine the resurgence of global current account imbalances and the lessons that can be drawn from Japan’s experience.

Since 2020, global imbalances have re-emerged after more than a decade of gradual narrowing. To better understand this trend, the EHESS France-Japan Foundation and the Banque de France, in partnership with the Louis Bachelier Institute, organized a workshop opened by Marie Brière, Managing Director of the Louis Bachelier Institute.

The discussions highlighted that global imbalances are driven not only by trade policies, but also by national saving and investment patterns.

Japan’s experience and the Plaza Accord (1985) demonstrate that a lasting rebalancing cannot rely on exchange rate adjustments alone. Productivity, investment and confidence are the key drivers of sustainable long-term adjustment.

Speakers also emphasized the growing importance of structural factors—such as demographics, artificial intelligence and strategic investment—in shaping future global economic balances.

Finally, participants concluded that addressing today’s global imbalances requires coordinated domestic rebalancing and stronger international cooperation, rather than a turn toward protectionism.

‍

‍