Bretton Woods III
Current economic conditions in the US and China imply that the post-crisis global economy will experience a return to large macroeconomic imbalances. Although many economists condemn such imbalances, history shows that they have characterized virtually all periods of global economic expansion.
https://prosyn.org/6zA46UH
SINGAPORE – Many analysts and observers believe that the global imbalances that characterized the world economy in the years before the 2008 crisis have substantially dissipated. But, while it is true that China’s current-account surpluses and America’s deficits have somewhat moderated since then, have the imbalances really been corrected? More important, can the post-crisis global economy enjoy both growth and balance?