Commentary
Uri Dadush
{
"authors": [
"Uri Dadush"
],
"type": "other",
"centerAffiliationAll": "",
"centers": [
"Carnegie Endowment for International Peace",
"Carnegie Europe",
"Carnegie Russia Eurasia Center"
],
"collections": [
"Transatlantic Cooperation"
],
"englishNewsletterAll": "",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "",
"programs": [],
"projects": [],
"regions": [
"North America",
"United States",
"East Asia",
"China",
"Western Europe",
"Asia",
"Europe"
],
"topics": [
"Economy",
"Trade",
"Foreign Policy"
]
}
REQUIRED IMAGE
Other
Global Rebalancing: The Dangerous Obsession, February, 17, 2011
While the obsession with global rebalancing stokes currency and protectionist tensions, it diverts attention from what is really needed—reforms at home.
By Uri Dadush
Published on Feb 17, 2011
The current emphasis on global rebalancing—which aims to reduce trade deficits and surpluses—is misguided. Trade deficits and surpluses narrowed significantly during the Great Recession, can be financed and eased over time, and are largely the result of domestic forces—making further global rebalancing unlikely.
While the obsession with global rebalancing stokes currency and protectionist tensions, it diverts attention from what is really needed—reforms at home. Rather than focusing on global rebalancing, countries should concentrate more on fixing their domestic problems and expanding their domestic demand at the maximum sustainable rate.
A version of this policy brief was originally published in Current History.
About the Author
Uri Dadush
Former Senior Associate, International Economics Program
Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.
- The Labors of Tsipras
- Greece, Complacency, and the EuroIn The Media
Uri Dadush
Recent Work
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
More Work from Carnegie Russia Eurasia Center
- Iran War Fallout Gifts Putin Diplomatic Victory at ASEAN SummitCommentary
Russia looks set to reap economic benefits from closer ties with Southeast Asian countries that are keen to find reliable energy suppliers and diversify trade ties.
Alexander Gabuev
- Simmering U.S.-Iran Conflict Is Moscow’s Ideal OutcomeCommentary
Ongoing uncertainty in the Middle East allows Moscow to both increase its influence in Tehran and continue to enjoy the financial windfall of higher oil prices.
Nikita Smagin
- Russian Oil Sector Battered but Not Broken by Ukrainian Air AttacksCommentary
If it proves impossible for the Russian authorities to avoid a gasoline deficit, the question then becomes how they will organize the distribution of a scarce resource.
Sergey Vakulenko
- Multiple Wars Are Ruining Central Asia’s Efforts to Diversify Its Trade RoutesCommentary
This year’s wars have made alternative routes to transit through Russia no less risky for Central Asian countries.
Galiya Ibragimova
- How to Ensure That Europe-Russia Talks Do Not FailCommentary
Reestablishing a dialogue with Moscow is not a goal in its own right. The goal is to guarantee the independence of Ukraine and the peace and security of Europe.
Arkady Moshes
