This book presents a radically different argument for what has caused, and likely will continue to cause, the collapse of emerging market economies. Pettis combines the insights of economic history, economic theory, and finance theory into a comprehensive model for understanding sovereign liability management and the causes of financial crises. He examines recent financial crises in emerging market countries along with the history of international lending since the 1820s to argue that the process of international lending is driven primarily by external events and not by local politics and/or economic policies. He draws out the corporate finance implications of this approach to argue that most of the current analyses of the recent financial crises suffered by Latin America, Asia, and Russia have largely missed the point. He then develops a sovereign finance model, analogous to corporate finance, to understand the capital structure needs of emerging market countries. Using this model, he finally puts into perspective the recent crises, a new sovereign liability management theory, the implications of the model for sovereign debt restructurings, and the new financial architecture. Bridging the gap between finance specialists and traders, on the one hand, and economists and policy-makers on the other, The Volatility Machine is critical reading for anyone interested in where the international economy is going over the next several years.

The Volatility Machine: Emerging Economics and the Threat of Financial Collapse

Business & Money

Pettis, Michael

Economics

Oxford University Press

A provocative look at how today’s trade conflicts are caused by governments promoting the interests of elites at the expense of workers Trade disputes are usually understood as conflicts between countries with competing national interests, but as Matthew C. Klein and Michael Pettis show in this book, they are often the unexpected result of domestic political choices to serve the interests of the rich at the expense of workers and ordinary retirees. Klein and Pettis trace the origins of today’s trade wars to decisions made by politicians and business leaders in China, Europe, and the United States over the past thirty years. Across the world, the rich have prospered while workers can no longer afford to buy what they produce, have lost their jobs, or have been forced into higher levels of debt. In this thought-provoking challenge to mainstream views, the authors provide a cohesive narrative that shows how the class wars of rising inequality are a threat to the global economy and international peace—and what we can do about it.

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace

Klein, Matthew C.

Yale University Press

<div>Winner of the 2021 Lionel Gelber Prize: A provocative look at how today's trade conflicts are caused by governments promoting the interests of elites at the expense of workers "The authors weave a complex tapestry of monetary, fiscal and social policies through history and offer opinions about what went right and what went wrong . . . Worth reading for their insights into the history of trade and finance."--George Melloan, Wall Street Journal "This is a very important book."--Martin Wolf, Financial Times Trade disputes are usually understood as conflicts between countries with competing national interests, but as Matthew C. Klein and Michael Pettis show, they are often the unexpected result of domestic political choices to serve the interests of the rich at the expense of workers and ordinary retirees. Klein and Pettis trace the origins of today's trade wars to decisions made by politicians and business leaders in China, Europe, and the United States over the past thirty years. Across the world, the rich have prospered while workers can no longer afford to buy what they produce, have lost their jobs, or have been forced into higher levels of debt. In this thought-provoking challenge to mainstream views, the authors provide a cohesive narrative that shows how the class wars of rising inequality are a threat to the global economy and international peace--and what we can do about it. Longlisted for the 2020 Financial Times & McKinsey Business Book of the Year Award and named a Best Business Book of 2020 by Strategy + Business</div>

How trade imbalances spurred on the global financial crisis and why we aren't out of trouble yet
China's economic growth is sputtering, the Euro is under threat, and the United States is combating serious trade disadvantages. Another Great Depression? Not quite. Noted economist and China expert Michael Pettis argues instead that we are undergoing a critical rebalancing of the world economies. Debunking popular misconceptions, Pettis shows that severe trade imbalances spurred on the recent financial crisis and were the result of unfortunate policies that distorted the savings and consumption patterns of certain nations. Pettis examines the reasons behind these destabilizing policies, and he predicts severe economic dislocations--a lost decade for China, the breaking of the Euro, and a receding of the U.S. dollar―that will have long-lasting effects.
Pettis explains how China has maintained massive―but unsustainable―investment growth by artificially lowering the cost of capital. He discusses how Germany is endangering the Euro by favoring its own development at the expense of its neighbors. And he looks at how the U.S. dollar's role as the world's reserve currency burdens America's economy. Although various imbalances may seem unrelated, Pettis shows that all of them―including the U.S. consumption binge, surging debt in Europe, China's investment orgy, Japan's long stagnation, and the commodity boom in Latin America―are closely tied together, and that it will be impossible to resolve any issue without forcing a resolution for all.
Demonstrating how economic policies can carry negative repercussions the world over, The Great Rebalancing sheds urgent light on our globally linked economic future.

The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy

Princeton University Press

How trade imbalances spurred on the global financial crisis and why we aren't out of trouble yet
China's economic growth is sputtering, the Euro is under threat, and the United States is combating serious trade disadvantages. Another Great Depression? Not quite. Noted economist and China expert Michael Pettis argues instead that we are undergoing a critical rebalancing of the world economies. Debunking popular misconceptions, Pettis shows that severe trade imbalances spurred on the recent financial crisis and were the result of unfortunate policies that distorted the savings and consumption patterns of certain nations. Pettis examines the reasons behind these destabilizing policies, and he predicts severe economic dislocations that will have long-lasting effects.
Demonstrating how economic policies can carry negative repercussions the world over, The Great Rebalancing sheds urgent light on our globally linked economic future.

The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy - Updated Edition

Avoiding the Fall: China's Economic Restructuring

The days of rapid economic growth in China are over. Mounting debt and rising internal distortions mean that rebalancing is inevitable. Beijing has no choice but to take significant steps to restructure its economy. The only question is how to proceed. Michael Pettis debunks the lingering bullish expectations for China's economic rise and details Beijing's options. The urgent task of shifting toward greater domestic consumption will come with political costs, but Beijing must increase household income and reduce its reliance on investment to avoid a fall.

Carnegie Endowment for Int'l Peace

China's economic growth is sputtering, the Euro is under threat, and the United States is combating serious trade disadvantages. Another Great Depression? Not quite. Noted economist and China expert Michael Pettis argues instead that we are undergoing a critical rebalancing of the world economies. Debunking popular misconceptions, Pettis shows that severe trade imbalances spurred on the recent financial crisis and were the result of unfortunate policies that distorted the savings and consumption patterns of certain nations. Pettis examines the reasons behind these destabilizing policies, and he predicts severe economic dislocations—a lost decade for China, the breaking of the Euro, and a receding of the U.S. dollar—that will have long-lasting effects.Pettis explains how China has maintained massive—but unsustainable—investment growth by artificially lowering the cost of capital. He discusses how Germany is endangering the Euro by favoring its own development at the expense of its neighbors. And he looks at how the U.S. dollar's role as the world's reserve currency burdens America's economy. Although various imbalances may seem unrelated, Pettis shows that all of them—including the U.S. consumption binge, surging debt in Europe, China's investment orgy, Japan's long stagnation, and the commodity boom in Latin America—are closely tied together, and that it will be impossible to resolve any issue without forcing a resolution for all.Demonstrating how economic policies can carry negative repercussions the world over, The Great Rebalancing sheds urgent light on our globally linked economic future.

BRILLIANCE AUDIO ^

The latest title in CEPR/ICMB's Geneva Reports on the World Economy series asks the following questions: What are likely to be the principal issues facing the international economy over the next decade? What could a realistic analysis hope for in the way of progress in confronting the problems of the future? What are the constraints imposed by the realities of international and domestic politics? What forms of international economic cooperation are most important to pursue, and most likely to be achieved?

After the Fall: The Future of Global Cooperation: Geneva Reports on the World Economy 14

Rodrik, Dani

Frieden, Jeffry

Zedillo, Ernesto

Center for Economic Policy Research

See the best price to sell, buy, or rent books by Pettis, Michael. BookScouter helps to compare book prices from 25+ online bookstores and 30+ buyback vendors with a single search.

Books by Pettis, Michael

See the best price to sell, buy, or rent books by Pettis, Michael. BookScouter helps to compare book prices from 25+ online bookstores and 30+ buyback vendors with a single search.

The Volatility Machine: Emerging Economics and the Threat of Financial Collapse

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace

The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy

The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy - Updated Edition

Avoiding the Fall: China's Economic Restructuring

Avoiding the Fall: China's Economic Restructuring

The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy

After the Fall: The Future of Global Cooperation: Geneva Reports on the World Economy 14