The chapter analyses macroeconomic adjustments at the world level using a three-country SFC model with the United States, Europe and China. Three versions are considered: the first with fixed dollar–yuan parity includes a diversification policy of the Chinese central bank’s reserves; the second introduces a flexible dollar–yuan parity which can be managed by the Chinese central bank; the third generalises the previous models with flexible prices instead of fixed prices. Supply shocks, mainly in the form of a loss of competitiveness in the United States, are used to analyse the adjustments through exchange rates, prices and quantities. They shed more light on the rising global imbalances since the 1990s and their partial reduction after 2008.