This is a discussion by I.J. Macfarlane, Governor of the Reserve bank of Australia, on global trade imbalances. What's different about this discussion? He does not believe global imbalances are caused by developments within U.S. He also has five key developments (empirical facts) that any theory of the current account imbalance must explain. His contention is that a story with the U.S. as the cause of global imbalances cannot explain all five of these developments. At the end he asks, and answers, the question of whether he lets the U.S. off too easily. Finally, he is dismissive of excess liquidity stories. It's a bit long, but not quite as long as it appears as it includes graphs, footnotes, and references:
I was told to remove this speech by the media office of the Reserve Bank of Australia (RBA). I am used to policies such as these:
Unless otherwise specified on this web site, reproduction of any Federal Reserve Bank of San Francisco Information contained herein may be made without limitation as to number, provided however, that it is not distributed for the purpose of private gain and it is appropriately credited to the Federal Reserve Bank of San Francisco.
Unfortunately, the RBA is more restrictive. Apologies to readers - the speech is still available in the link above.