Contributor(s): Olivier Blanchard | A strong and sustained world recovery requires two rebalancing acts. Internal, with a shift, in advanced countries, from fiscal support to private demand. External, with an increase in net exports in deficit countries, notably the US, and a decrease in net exports in surplus countries, notably China. Policy should be aimed at increasing their pace. This lecture is one in a series of lectures to celebrate 21 years of the Centre for Economic Performance. Olivier Blanchard is Economic Counsellor and Director of the Research Department at the IMF and has worked closely with the CEP over the last 25 years.