This was my intuitive reaction after reading this Matthew Yglesias post:
So without a recovery in the U.S. and global economy, there cannot be asustainable recovery of Chinese growth. And with the U.S, recoveryrequiring lower consumption, higher private savings and lower tradedeficits, a U.S. recovery requires China's and other surplus countries'(Japan, Germany, etc.) growth to depend more on domestic demand andless on net exports. But domestic-demand growth is anemic in surpluscountries for cyclical and structural reasons. So a recovery of theglobal economy cannot occur without a rapid and orderly adjustment ofglobal current account imbalances.
But I'm not Nouriel Roubini,so I couldn't have put it in quite those words. I'd never want to beknown as the Doctor of Doom, though, so no hard feelings.
Keep reading for free!
Get instant access to the rest of this article by submitting your email address below. You'll also get access to three articles of your choice each month and our free newsletter:
now to get full access.
Already a subscriber?
Log in here
What you’ll get with an All-Access subscription to World Politics Review:
A WPR subscription is like no other resource — it’s like having a personal curator and expert analyst of global affairs news. Subscribe now, and you’ll get:
- Immediate and instant access to the full searchable library of tens of thousands of articles.
- Daily articles with original analysis, written by leading topic experts, delivered to you every weekday.
- Regular in-depth articles with deep dives into important issues and countries.
- The Daily Review email, with our take on the day’s most important news, the latest WPR analysis, what’s on our radar, and more.
- The Weekly Review email, with quick summaries of the week’s most important coverage, and what’s to come.
- Completely ad-free reading.
And all of this is available to you when you subscribe today.
More World Politics Review