The Great Recession, Global Conditions from West to East and Back Again: A Forward Looking Commentary
Darryl Mitry, David Smith
This article examines national economies, the processes of the global financial system, the relationship to the expansion of global enterprise and the future. The article describes how the process of global economic integration was largely accomplished by a monetary amplification that supported chronic East-West trade imbalances that are unsustainable. The mechanism for much of the recent global economic growth is identified and shown to be untenable because the consequences of the process eventually results in a subsequent reversal and global contraction. Tracing the reactions in terms of who assumes the costs and who receives the benefits helps to illuminate the nature of the process and the subsequent failure. The future consequences are examined, contrasting policies are compared and recommendations for solving the problems are offered.