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I propose here an interpretation of the crisis and its policy implications. There is now an extensive literature, and the data are easily available, so here I simply set out the argument, with only a few references and no tables or graphs. I maintain that global macroeconomic imbalances are the underlying cause of the crisis. I then consider forward-looking concerns and policies to deal with them. I con* clude by proposing several major policy initiatives. They will require action by both the developed country members of the G20 and the developing and emerging mar* ket G20 countries. Implementation may fall to individual countries, to the group as a whole, or to the international institutions. But regardless of the origins of the crisis, responsibilities for dealing with it lie with all countries and are reciprocal. The key proposals regarding global imbalances include:• Provide emerging market countries with credible insurance against sudden stops, through central bank swap lines, reserve pooling, and an expansion of IMF resources with significant changes in how they may be used. Only this could induce them to forego further accumulation of precautionary reserves and accept a switch from current account surpluses to deficits.