Trump’s tariffs were erratic and flawed but imbalances in the world economy are real
How to solve global imbalances
Debate over trade strategy has become an ideological litmus test in which few are willing to acknowledge nuance
Revisiting Ricardo
Policymakers on either side of bitter trade dispute seem to confuse two issues
It is a symptom of the problem
Many more years of high economic expansion are only possible if the country restructures to boost domestic consumption
The government must eliminate downward pressure on demand by reversing policies that favour income inequality
Keynes knew
Trade surplus contraction must be balanced by a cut in the gap between domestic savings and investment
Probably not. Here’s why.
The Chinese economy still needs demand-side support, not more supply-side support
Surpluses will continue as Beijing struggles to rein in burgeoning debt and increase domestic consumption
Regulators should be more worried by too much buying of its stocks and bonds than by too little
The idea that GDP can be twice as big in 2035 faces two significant obstacles: demography and politics
Michael Pettis argues imbalances will continue to set China back unless retail sales once again begin to outpace industrial production.
When it comes to the future of the Chinese economy, Beijing has a difficult choice to make.
How global macroeconomic asymmetries reflect homespun economic problems
Both nations are indispensable, so companies face a two-track world
Beijing’s repeated pledges to shrink the state are both empty and impossible
It is wrong to assume that prices reflect a genuine ‘view’ about growth prospects
This would be a dangerous way of trying to fix an unstable banking system
