Rethinking Global Imbalances by Jean-Pierre Landau & Sébastien Jean
Today’s global imbalances, starting with China’s massive trade surplus, are not simply the result of poor macroeconomic coordination. Rather, they reflect long-term strategic thinking and a departure from the bias toward openness on which the postwar trade order was built.
PARIS—Global imbalances are moving back to the top of the policy agenda, reflecting angst about the “second China shock.” As China’s industrial exports have surged while imports have stagnated, its growing trade surpluses have become a problem for everyone.
