What is the Current Account Surplus Watch?

The Current Account Surplus Watch is a watch list of economies that have consistently large current account surpluses and that do not take adequate measures to reduce their surpluses by stimulating domestic demand or otherwise offset their surpluses with other constructive policies, such as international development assistance.  These economies are deemed to pose a threat to the functioning of the global economy, because they subtract demand out of the world economy at a time of weak global aggregate demand and because they pose an obstacle to the adjustment policies deficit economies must undertake to avoid or to get out of financial crises.