The most important structural feature of the neoliberal order has been the persistence of global imbalances. Chronic trade deficits of the United States have been matched by equally persistent surpluses of fast-growing Asian economies and oil exporters. Alongside, there has been an explosion in US public and private sector debt, which has its counterpart in the savings and mounting dollar reserves of manufacturing powerhouses of the Pacific rim and primary resource exporters of west Asia. Once inflation had been tamed in the early 1980s, it has remained at very low levels. On the other hand, asset prices have taken off. Furthermore, the intensity and frequency of asset price bubbles has been unprecedented. In this essay, I will try to show how these developments came about historically and stem from the political economy of the US state.
Global Imbalances and Bubble Economics
Global Imbalances and Bubble Economics
Global Imbalances and Bubble Economics
The most important structural feature of the neoliberal order has been the persistence of global imbalances. Chronic trade deficits of the United States have been matched by equally persistent surpluses of fast-growing Asian economies and oil exporters. Alongside, there has been an explosion in US public and private sector debt, which has its counterpart in the savings and mounting dollar reserves of manufacturing powerhouses of the Pacific rim and primary resource exporters of west Asia. Once inflation had been tamed in the early 1980s, it has remained at very low levels. On the other hand, asset prices have taken off. Furthermore, the intensity and frequency of asset price bubbles has been unprecedented. In this essay, I will try to show how these developments came about historically and stem from the political economy of the US state.