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Neoliberalism, Global Imbalances, and Stages of Capitalist Development

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  • Andong Zhu
  • Minqi Li

Abstract

This paper examines certain structural macroeconomic relations in the neoliberal global economy. The current global economy rests upon three unsustainable trends: the debt-driven U.S. consumption expansion; China’s excessive investment expansion; and the large and rising U.S. current account deficits. When these trends are eventually reversed or corrected, there could be major upheavals in the world economy. The decline of neoliberalism may pave the way for a new set of economic, political, and social institutions.

Suggested Citation

  • Andong Zhu & Minqi Li, 2005. "Neoliberalism, Global Imbalances, and Stages of Capitalist Development," Working Papers wp110, Political Economy Research Institute, University of Massachusetts at Amherst.
    • Handle: RePEc:uma:periwp:wp110
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    File URL: https://per.umass.edu/fileadmin/pdf/working_papers/working_papers_101-150/WP110.pdf
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    References listed on IDEAS

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    1. Michael P. Dooley & David Folkerts-Landau & Peter M. Garber, 2005. "An essay on the revived Bretton Woods system," Proceedings, Federal Reserve Bank of San Francisco, issue Feb.
    2. Maurice Obstfeld & Kenneth S. Rogoff, 2005. "Global Current Account Imbalances and Exchange Rate Adjustments," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 36(1), pages 67-146.
    3. repec:fip:fedgsq:y:2005:i:mar10 is not listed on IDEAS
    4. World Bank, 2004. "World Development Indicators 2004," World Bank Publications - Books, The World Bank Group, number 13890, December.
    5. H.W. Arndt, 1998. "Globalisation," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 51(204), pages 73-89.
    6. Ben S. Bernanke, 2005. "The global saving glut and the U.S. current account deficit," Speech 77, Board of Governors of the Federal Reserve System (U.S.).
    7. James Crotty, 2000. "Trading State-Led Prosperity for Market-Led Stagnation: From the Golden Age to Global Neoliberalism," Published Studies ps7, Political Economy Research Institute, University of Massachusetts at Amherst.
    8. H.W. Arndt, 1998. "Globalisation," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 51(204), pages 73-89.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Bill Lucarelli, 2011. "The Economics of Financial Turbulence," Books, Edward Elgar Publishing, number 14252.
    2. Minqi Li, 2007. "U.S., China, and the Unraveling of Global Imbalances," Working Papers wp146, Political Economy Research Institute, University of Massachusetts at Amherst.

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    More about this item

    Keywords

    Neoliberalism; U.S. Economy; Chinese Economy; Imbalances; Long Waves;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F01 - International Economics - - General - - - Global Outlook
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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