The Global Economy Has Experienced Three Major Imbalances
- By Christina Xia
- Published January 18th, 2012
- Business
- Unrated
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The United States recently restarted a second quantitative easing policy, the dollar hegemony, this beggar thy neighbor's populist strategy on the one hand demonstrates the unfairness of the current international monetary system and imbalance, it also will exacerbate the trend of global liquidity flood. In the formation of capital markets and large markets gluttonous feast at the same time, the next possible crisis in the global cycle of horns.
Imbalance and evolution
Monetary standard in the modern system of three representative, the global economy has experienced three major imbalance.
Imbalances occur in the first between Britain. Silver Standard, the British unbearable for tea and raw silk imported from China Silver arising out of, expand the opium trade. Humen smoke after the Opium War, the Sino-British trade imbalance has become the ultimate solution, it is an empire of indulgence and another fallen empire: the center of global power shift from the East West. Silver standard gold standard was eventually defeated.
Imbalance in the second place under the gold standard in the two world wars, the United States a way to blackmail Allied war debts, the debt chain, resulting out of date at the time the gold standard system, creating a trade protection, the division of the world's capital controls . The United States first "quantitative easing" to the European democratic mood driven a road to ruin, and eventually led to World War II. Subsequently, the gold standard collapsed, the United States completed the primitive accumulation through two wars, and instead of Europe to become the leader of capitalism.
The third imbalance under dollar standard have to much more complex. In fact, since the dolla
r has replaced gold, the imbalance has become the norm in the international economy. U.S. born is not an international currency, but lost to White Keynes at Bretton Woods, the international currency to the dollar is doomed. The United States to the gold standard through the Bretton Woods system, the second restoration, the international monetary system of dollars Annals began. However, the system "Triffin dilemma" of the fundamental contradictions were "golden age" of the global economy and the great expansion of trade intensification of the gold standard eventually led to a complete end.
The United States as the real world monetary policy makers, the currency is no longer neutral, the United States is no longer shrinking, the dollar hegemony, the new model begins to drive the global economy in the world are beginning to green paper crazy.
Not be issued outside the reserve currency country caused by the sin of its domestic financial system, currency mismatch, and their currency can not be international borrowing. Reserve currency issuing countries outside the state to meet the growing demand for reserve assets and burdened with fiscal deficits and external deficits, and there is no ready mechanism to force a surplus or the reserve issuing countries to adjust. Received lessons from emerging economies appeared to form self-insurance against the high cost of the tendency of the international balance of payments crisis, which led to their increased demand for reserve currency, and is expanding to meet the core national aspirations of consumption and access to resources. In the current international monetary system, the reserve assets of the supply and demand booming inevitably reflected in the balance of payments imbalances.
This imbalance in the "Washington consensus" into consumers and foreign producers to adjust the pressure, and resources in the country is also bundled.
Imbalance and evolution
Monetary standard in the modern system of three representative, the global economy has experienced three major imbalance.
Imbalances occur in the first between Britain. Silver Standard, the British unbearable for tea and raw silk imported from China Silver arising out of, expand the opium trade. Humen smoke after the Opium War, the Sino-British trade imbalance has become the ultimate solution, it is an empire of indulgence and another fallen empire: the center of global power shift from the East West. Silver standard gold standard was eventually defeated.
Imbalance in the second place under the gold standard in the two world wars, the United States a way to blackmail Allied war debts, the debt chain, resulting out of date at the time the gold standard system, creating a trade protection, the division of the world's capital controls . The United States first "quantitative easing" to the European democratic mood driven a road to ruin, and eventually led to World War II. Subsequently, the gold standard collapsed, the United States completed the primitive accumulation through two wars, and instead of Europe to become the leader of capitalism.
The third imbalance under dollar standard have to much more complex. In fact, since the dolla
The United States as the real world monetary policy makers, the currency is no longer neutral, the United States is no longer shrinking, the dollar hegemony, the new model begins to drive the global economy in the world are beginning to green paper crazy.
Not be issued outside the reserve currency country caused by the sin of its domestic financial system, currency mismatch, and their currency can not be international borrowing. Reserve currency issuing countries outside the state to meet the growing demand for reserve assets and burdened with fiscal deficits and external deficits, and there is no ready mechanism to force a surplus or the reserve issuing countries to adjust. Received lessons from emerging economies appeared to form self-insurance against the high cost of the tendency of the international balance of payments crisis, which led to their increased demand for reserve currency, and is expanding to meet the core national aspirations of consumption and access to resources. In the current international monetary system, the reserve assets of the supply and demand booming inevitably reflected in the balance of payments imbalances.
This imbalance in the "Washington consensus" into consumers and foreign producers to adjust the pressure, and resources in the country is also bundled.
Written by Christina Xia
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