The global crisis has revived the growth-rebalancing debate, backing the position of those advocating a fast reduction of the imbalances between the US and China. By means of a two-country two-stage growth model reproducing the main qualitative features of the Sino-American co-dependency, we analyze alternative (medium- and long-term) scenarios for its evolution. We show that altering the Chinese exchange rate policy and down-sizing the US external deficits with a view to moving the production of tradables toward the US may imply relevant costs: the emergence of structural unemployment in the US and a slow-down in the process whereby the Chinese labor force is gradually absorbed in the modern sectors of the economy.
Titolo: | The costs of rebalancing the China-US co-dependency |
Autori: | Bonatti, Luigi; Fracasso, Andrea |
Autori Unitn: | |
Titolo del periodico: | RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI |
Anno di pubblicazione: | 2012 |
Numero e parte del fascicolo: | 1 |
Codice identificativo Scopus: | 2-s2.0-84874364376 |
Handle: | http://hdl.handle.net/11572/93488 |
Appare nelle tipologie: | 03.1 Articolo su rivista (Journal article) |