Publication

This publication argues that the issue that needs to be placed in the center of domestic reform policies, especially in the US, is that of managing the changing relative competitiveness of states. The author discusses the 2008-2009 financial crisis with reference to global payments imbalances, liquidity and the rise of China. She assesses the US-China bilateral trade imbalance, before providing possibilities for US policymakers to restore a more equal trading relationship. She concludes that US manufacturers need to adhere to the fundamentals of commerce, and that lowered wage expectations may help economic viability.