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.
General
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