THE GREAT REBALANCING
TRADE, CONFLICT, AND THE PERILOUS ROAD AHEAD FOR THE WORLD ECONOMY
by Michael Pettis · first published 2013
83% recommend17% neutral
Why HN recommends it
Explains the causes of global trade imbalances, such as China's high savings rate and currency manipulation, with a view that departs from common assumptions; suited to readers new to international economics.
Summarised by Claude from recommending comments
China's economic growth is sputtering, the Euro is under threat, and the United States is combating serious trade disadvantages. Another Great Depression? Not quite. Noted economist and China expert Michael Pettis argues instead that we are undergoing a critical rebalancing of the world economies. Debunking popular misconceptions, Pettis shows that severe trade imbalances spurred on the recent financial crisis and were the result of unfortunate policies that distorted the savings and consumption patterns of certain nations. Pettis examines the reasons behind these destabilizing policies, and h
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Thank you so much - I’m so glad you enjoyed it! If you’re interested in this topic I highly recommend “The Great Rebalancing” by Micheal Pettis. A really good book that looks at how currency manipulation and other factors have created imbalance in the global economy. I’ve also written a book which touches on this - but focuses…
on “Why Did China Just Devalue the Yuan? How Trade Works with Free-Floating Currency” ↗…the US. That is the fundamental thing to change to get rid of dollar dominance as it is the root. I would recommend to you a book by Michael Pettis, a professor at the University of Beijing called The Great Rebalancing who makes this all clear. He is also not sycophantic to the US if that is a concern
on “De-Dollarization Is Happening at a ‘Stunning’ Pace” ↗Read his book The Great Rebalancing. There are pros and cons to it, whether you think it's an overall positive or overall negative likely depends on who you are and what interests you seek. One thing I've learned, most people do not understand…
on “I.M.F. Makes China’s Renminbi One of World’s Select Currencies” ↗If you are interested in this, I highly recommend 'The Great Rebalancing' by Michael Pettit. He explains the causes and implications of China's high savings rate, and the relationship with other countries' savings rates. His explanation of the causality is contrary to most…
on “Joyous Africans Take to the Rails, with China’s Help” ↗Raising interest rates will actually improve the economy for this reason, but policy makers don't understand this. Read more here http://www.amazon.com/The-Great-Rebalancing-Conflict-Perilou...
on “Why are interest rates so low?” ↗Wow, this is a long read but definitely worth it. I have never read anything by Pettis, but I am thinking about picking up The Great Rebalancing if it explores similar stuff more deeply. It doesn't always come naturally to look at country economies as a bunch of open systems all operating in a closed system, but this read will certainly encourage…
on ““Not with a bang but a whimper”” ↗