Since the onset of the global economic crisis, efforts to implement a broad multilateral trade scheme have been on hold. Indeed, amid accusations of Chinese currency manipulation, a sluggish US recovery, and a worsening debt crisis in Europe, protectionist pressure is building. Can an open global trading system survive in this environment?
Will the World Keep Buying US Treasuries?
Paola Subacchi & Paul van den Noord
foresee a gradual reduction in countries’ holdings of dollar-denominated debt, not a rapid sell-off.
