WASHINGTON — Treasury Secretary Nicholas F. Brady, in a rosy review today of the Paris economic summit, hailed the progress being made to unwind global trade imbalances but said Japan and West Germany might need to do more to keep their economies growing.
Previous American calls for faster growth abroad have sometimes been controversial. Although the United States has a keen interest in ensuring expanding overseas markets for its exporters, Tokyo and Bonn have both had to raise interest rates this year to prevent their economies from overheating.
Brady, testifying to the Joint Economic Committee of Congress, acknowledged that Japan and Germany grew strongly in 1988 and in the first part of this year, sucking in imports that helped trim their huge trade surpluses with the United States.
"But it is vital that both also be ready to consider additional . . . measures if domestic demand growth falters," the Treasury secretary said.