Imbalances Can't Go on Forever

Zedillo, Ernesto; Yew, Lee Kuan; Johnson, Paul
July 2006
Forbes Asia;7/24/2006, Vol. 2 Issue 13, p16
The article focuses on the causes of the global economic imbalances being experienced in 2006. It argues that the imbalances are the result of faulty fiscal and monetary policies. The reliance of Asian countries on undervalued exchange rates to stimulate exports is the real cause of the imbalances according to Barry Eichengreen of the University of California in Berkeley. It details the advantages of implementing expansionary policies based on macroeconomic fundamentals to Asians and Europeans.


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