1. 1 GLOBAL FINANCIAL IMBALANCES Towards a new Bretton Woods? Rachel Lomax Deputy Governor, Bank of England Chatham House Conference, 24 January 2006

2. 2 US (gross) saving and investment Source: IMF World Economic outlook. -10 -5 0 5 10 15 20 25 30 199019911992199319941995199619971998199920002001200220032004 Public savingsHousehold savings Corporate savings InvestmentSaving % GDP

3. 3 Foreigners’ net acquisition of US assets Source: Board of Governors of the Federal Reserve System.

4. 4 US current account deficit financing Source: Bureau of Economic analysis.

5. 5 Global current accounts Source: IMF. Note: 2005F figures are IMF forecasts. Oil exporters include the 10 largest oil exporters in 2004 (Saudi Arabia, Russia, Norway, Iran, United Arab Emirates, Nigeria, Kuwait, Venezuela, Mexico and Algeria).

6. 6 Financial globalisation trends Industrial countries, 1970-2003 Source: IMF World Economic Outlook (April 2005, Chapter 3)

7. 7 US net international investment position and net income receipt Source: Bureau of Economic analysis.

8. 8 Top reserve holders of the world Source: IMF World Economic Outlook. Note: These are the largest reserve holders as of September 2005. 0 500 1000 1500 2000 2500 199019911992199319941995199619971998199920002001200220032004 Hong Kong India Russia Korea Taiwan China Japan US$ billion