Bretton Woods 2 Is Dead, Long Live Bretton Woods 3?

Free registration required

Executive Summary

This paper sets out to investigate the forces and conditions that led to the emergence of global imbalances preceding the worldwide crisis of 2007-09, and both the likelihood and the potential sustainability of reemerging global imbalances as the world economy recovers from that crisis. The "Bretton Woods 2" hypothesis of sustainable global imbalances featuring a quasi-permanent U.S. current account deficit overlooked that the domestic counterpart to the United States' external deficit - soaring household indebtedness - was based not on safe debts but rather toxic ones.

  • Format: PDF
  • Size: 1684.6 KB