The MAP Account Balance Strategies of the FSB, IMF, and BIS
By JC Collins
In 2010 U.S. Treasury Secretary Timothy Geithner proposed the establishment of symmetric limitations on current account balances of +/- four percent of GDP. The recommendation was put forward at the G20 Summit in Seoul, South Korea as a part of the Macroeconomic Policy Coordination (commonly referred to as MAP), a peer reviewed based mechanism meant to promote and support macroeconomic policies amongst the G20 nations.
The proposal was rejected by both Germany and China to ensure that no numerical benchmark or limitations were set on account balances. This rejection extended to the Cannes summit in 2011 as a response to concerns over the independence of the MAP process from the monetary policies of the Federal Reserve and the EU.