Robert M. La Follette School of Public Affairs

China, East Asia, and Global Rebalancing

The author assesses macroeconomic conditions in the United States, euro zone, and East Asia. Given the likely recession in the euro area and U.S. fiscal policy paralysis, the burden of maintaining world growth and shrinking external imbalances falls heavily on East Asian policymakers, particularly in China. However, the required policy changes would benefit China by prompting it to make its growth model more driven by domestic demand and, hence, more sustainable.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2012-006
  • Author(s): Menzie D. Chinn