Depressing Thoughts

The New Republic

You have read:

0 / 8

free articles in the past 30 days.

Already a subscriber?

Log in here

sign up for unlimited access for just $34.97Sign me up

THE PLANK DECEMBER 3, 2008

Depressing Thoughts

If you really want to get depressed about the state of the U.S. and world economy, I recommend reading the columns in the Financial Times today of Martin Wolf and Nouriel Roubini. Roubini warns that “traditional monetary policy” has become “ineffective” in combating the world recession and that “the worst is not behind us.” Wolf sets out the limits of a national focus on a fiscal stimulus in recovering from the recession. Without a change in the global imbalance between surplus countries (like China, Japan, and the oil-producing nations) and the deficit countries (like the US, Spain, and the UK), a fiscal stimulus alone will not be a “durable solution to the challenge of sustaining global demand.” The recession is global and will require global solutions. That was undoubtedly behind Secretary of the Treasury Hank Paulson’s call yesterday for the Chinese to boost the value of their currency against the dollar, which would help American exports at the expense of exports from China to the US and will be on the agenda of his forthcoming trip to China.

--John B. Judis

share this article on facebook or twitter

posted in: the plank, person career

print this article

SHARE YOUR THOUGHTS

Show all 4 comments

You must be a subscriber to post comments. Subscribe today.

Back to Top

SHARE HIGHLIGHT

0 CHARACTERS SELECTED

TWEET THIS

POST TO TUMBLR

SHARE ON FACEBOOK