Connections in Political Economy - THE NEED TO DEAL WITH GLOBAL IMBALANCES (News Comment)

Rolling Newspaper Comment and Letters:
TOPIC: The Need to reduce Global Imbalances

Name and Link (latest shown first) Type of Resource Description

China and Germany unite to impose global deflation
By Martin Wolf, Financial Times, March 16 2010
Available Here (Subscription required for repeated access)) FT Article EXTRACT........"China and Germany are, of course, very different from each other. Yet, for all their differences, these countries share some characteristics: they are the largest exporters of manufactures, with China now ahead of Germany; they have massive surpluses of saving over investment; and they have huge trade surpluses. (See charts.) Both also believe that their customers should keep buying, but stop irresponsible borrowing. Since their surpluses entail others’ deficits, this position is incoherent. Surplus countries have to finance those in deficit. If the stock of debt becomes too big, the debtors will default. If so, the vaunted “savings” of surplus countries will prove to have been illusory: vendor finance becomes, after the fact, open export subsidies......"

The world economy has no easy way out of the mire
By Martin Wolf, Financial Times, February 23 2010
Available Here (Subscription required for repeated access)) FT Article EXTRACT: ".....the private sector is now spending far less than its aggregate income. Forecasts in the Organisation for Economic Co-operation and Development’s latest Economic Outlook imply that in six of its members (the Netherlands, Switzerland, Sweden, Japan, the UK and Ireland) the private sector will run a surplus of income over spending greater than 10 per cent of gross domestic product this year. Another 13 will have private surpluses between 5 per cent and 10 per cent of GDP. The latter includes the US, with 7.3 per cent. The eurozone private surplus will be 6.7 per cent of GDP and that of the OECD as a whole 7.4 per cent. Moreover, the shift in the private sector balance between 2007 and 2010 is forecast to exceed 10 per cent of GDP in no fewer than eight OECD member countries (see chart). It is also forecast to exceed 5 per cent of GDP in another eight. In the US, it is forecast to be 9.6 per cent of GDP. In the eurozone, it is forecast at 5.5 per cent of GDP and in the OECD at 7.3 per cent. Depression threatened........"

Finding a route to recovery and reform gets tough now
By Martin Wolf, Financial Times, Oct 6 2009
Available Here (Subscription required for repeated access)) FT Article

Crisis breeds short memories
By Stephen Roach, Financial Times, Oct 6 2009
Available Here (Subscription required for repeated access)) FT Article

Charge interest to correct imbalances
Letter to Editor, by Prof Tony Thirlwall, Financial Times,Sept 30th 2009
Available Here (Subscription required for repeated access)) FT Letters page A response to Wolfgang Münchau (see below)

A recognition of the deep roots of the crisis
By Wolfgang Münchau, Financial Times, Sep 28th 2009
Available Here (Subscription required for repeated access)) FT Article

An alternative solution to easing global imbalances
Letter to Editor, by Prof Antimo Verde, Financial Times, Aug 27th 2009
Available Here (Subscription required for repeated access)) FT Letters page A response to Fred Bergsten and Arvind Subramanian (see below)

China’s ever-growing trade imbalance
Letter to Editor, by Mr Ernest H. Preeg, Financial Times, Aug 24th 2009
Available Here (Subscription required for repeated access)) FT Letters page A response to Fred Bergsten and Arvind Subramanian (see below)

America cannot resolve global imbalances on its own
By Fred Bergsten and Arvind Subramanian , Financial Times, Aug 19th 2009
Available Here (Subscription required for repeated access)) FT Article

It is in Beijing’s interests to lend Geithner a hand
By Martin Wolf, Financial Times, June 9th 2009
Available Here (Subscription required for repeated access)) FT Article

Down and out for the long term in Germany
By Wolfgang Münchau , Financial Times, June 7th 2009
Available Here (Subscription required for repeated access)) FT Article

Green shoots will not mean healthy roots. The fundamental imbalances in the global economy have been overlooked in the rush of short-term fixes
By Larry Elliott Guardian 26th April 2009
Available Here Guardian Article

Global imbalances threaten the survival of liberal trade
By Martin Wolf, Financial Times, Dec 2nd 2008
Available Here (Subscription required for repeated access)) FT Article

Name and Link (latest shown first)	Type of Resource	Description

China and Germany unite to impose global deflation By Martin Wolf, Financial Times, March 16 2010 Available Here (Subscription required for repeated access))	FT Article	EXTRACT........"China and Germany are, of course, very different from each other. Yet, for all their differences, these countries share some characteristics: they are the largest exporters of manufactures, with China now ahead of Germany; they have massive surpluses of saving over investment; and they have huge trade surpluses. (See charts.) Both also believe that their customers should keep buying, but stop irresponsible borrowing. Since their surpluses entail others’ deficits, this position is incoherent. Surplus countries have to finance those in deficit. If the stock of debt becomes too big, the debtors will default. If so, the vaunted “savings” of surplus countries will prove to have been illusory: vendor finance becomes, after the fact, open export subsidies......"
The world economy has no easy way out of the mire By Martin Wolf, Financial Times, February 23 2010 Available Here (Subscription required for repeated access))	FT Article	EXTRACT: ".....the private sector is now spending far less than its aggregate income. Forecasts in the Organisation for Economic Co-operation and Development’s latest Economic Outlook imply that in six of its members (the Netherlands, Switzerland, Sweden, Japan, the UK and Ireland) the private sector will run a surplus of income over spending greater than 10 per cent of gross domestic product this year. Another 13 will have private surpluses between 5 per cent and 10 per cent of GDP. The latter includes the US, with 7.3 per cent. The eurozone private surplus will be 6.7 per cent of GDP and that of the OECD as a whole 7.4 per cent. Moreover, the shift in the private sector balance between 2007 and 2010 is forecast to exceed 10 per cent of GDP in no fewer than eight OECD member countries (see chart). It is also forecast to exceed 5 per cent of GDP in another eight. In the US, it is forecast to be 9.6 per cent of GDP. In the eurozone, it is forecast at 5.5 per cent of GDP and in the OECD at 7.3 per cent. Depression threatened........"
Finding a route to recovery and reform gets tough now By Martin Wolf, Financial Times, Oct 6 2009 Available Here (Subscription required for repeated access))	FT Article
Crisis breeds short memories By Stephen Roach, Financial Times, Oct 6 2009 Available Here (Subscription required for repeated access))	FT Article
Charge interest to correct imbalances Letter to Editor, by Prof Tony Thirlwall, Financial Times,Sept 30th 2009 Available Here (Subscription required for repeated access))	FT Letters page	A response to Wolfgang Münchau (see below)
A recognition of the deep roots of the crisis By Wolfgang Münchau, Financial Times, Sep 28th 2009 Available Here (Subscription required for repeated access))	FT Article

An alternative solution to easing global imbalances Letter to Editor, by Prof Antimo Verde, Financial Times, Aug 27th 2009 Available Here (Subscription required for repeated access))	FT Letters page	A response to Fred Bergsten and Arvind Subramanian (see below)
China’s ever-growing trade imbalance Letter to Editor, by Mr Ernest H. Preeg, Financial Times, Aug 24th 2009 Available Here (Subscription required for repeated access))	FT Letters page	A response to Fred Bergsten and Arvind Subramanian (see below)
America cannot resolve global imbalances on its own By Fred Bergsten and Arvind Subramanian , Financial Times, Aug 19th 2009 Available Here (Subscription required for repeated access))	FT Article

It is in Beijing’s interests to lend Geithner a hand By Martin Wolf, Financial Times, June 9th 2009 Available Here (Subscription required for repeated access))	FT Article
Down and out for the long term in Germany By Wolfgang Münchau , Financial Times, June 7th 2009 Available Here (Subscription required for repeated access))	FT Article

Green shoots will not mean healthy roots. The fundamental imbalances in the global economy have been overlooked in the rush of short-term fixes By Larry Elliott Guardian 26th April 2009 Available Here	Guardian Article

Global imbalances threaten the survival of liberal trade By Martin Wolf, Financial Times, Dec 2nd 2008 Available Here (Subscription required for repeated access))	FT Article