Big external deficit countries like the US and the UK are going to run fiscal deficits of between 8 and 10% of their GDPs, while the deficit in surplus countries like China and Germany remains between 3 and 4% of their GDPs.
....All in all, fiscal policy clearly is being used to support global growth, as it should be. The fall in exports globally in February leaves no doubt that there is an enormous shortfall of demand, relative to the world’s capacity to produce. But the global decomposition of the stimulus doesn’t suggest that it will do much to support “rebalancing.” The surplus counties generally aren’t leading the stimulus league tables.
Something more for Obama and Geithner to talk about at the upcoming G20 meeting.