Global Recession Risk: Dollar Devaluation and the World Economy
Global Recession Risk: Dollar Devaluation and the World Economy
Palgrave Macmillan | 2007 | ISBN: 0230521509 | Pages: 276 | PDF | 1.68 MB
Palgrave Macmillan | 2007 | ISBN: 0230521509 | Pages: 276 | PDF | 1.68 MB
The US current account deficit approaches one trillion dollars, absorbing 75 percent of world surpluses. A fire sale of US debt could cause a global recession through disorderly devaluation of the dollar, raising interest rates and crashing stock markets. The G7 doctrine of shared responsibility intends to coordinate regional efforts. There is meagre political capital in most regions for these reforms. The devaluation of the dollar could be faster than G7 policy coordination. This book analyzes the main issues and individual regions, including China, Japan, the EU and the USA.