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The Chinese Renaissance and the Transpacific Macroeconomic Imbalances

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The Chinese Economic Renaissance

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Abstract

Global macroeconomic imbalances are not new. The global economy has faced external payment imbalances of disturbing dimensions and related adjustment difficulties before. China has a large and growing merchandise trade and current account surplus vis-à-vis the US. Although the current transpacific macroeconomic imbalance is of an unprecedented magnitude, has persisted for a long while, and threatens to endure further and exacerbate, during the postwar period a substantial number of similar episodes of large and persistent imbalances occurred. Whether the transpacific imbalance could be a threat to the global economy at some time in the present or near future has generated an impassioned debate in the profession. It has generated a good deal of popular interest as well; Martin Wolf of the Financial Times launched a website on this theme under the rubric of “what is happening is extraordinary.”

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© 2008 Dilip K. Das

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Das, D.K. (2008). The Chinese Renaissance and the Transpacific Macroeconomic Imbalances. In: The Chinese Economic Renaissance. Palgrave Macmillan, London. https://doi.org/10.1057/9780230227446_4

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