The correction of external imbalances will be a long and difficult process.

Deficit countries, while following policies designed to encourage steady low-inflation growth, will reduce their fiscal and external imbalances.

Past external imbalances left Pakistan with a large foreign debt burden.

The group "concluded that the recent exchange market developments were broadly in line with continued adjustment of external imbalances," according to the communique.

"We would look for them to contribute to reducing external imbalances," he said.

In this connection, they agreed to continue cooperative efforts to stimulate growth and to reduce external imbalances.

"We are now seeing good evidence that we have begun to reverse the external imbalances among the major industrial countries," he said.

If the only problem confronting the economy were this external imbalance, the policy prescription would be uncontroversial.

The single currency has not provided a solution to all the internal and external imbalances which have occurred.

Ensure comparability of all elements and relations between internal and external imbalances.