Prospects for the U.S. and the World : A Crisis that Conventional Remedies Cannot Resolve

In this paper, we argue that the United States and the rest of the world's economies will not be able to achieve balanced growth and full employment unless they are able to agree upon and implement an entirely new way of running the global economy. The economic recovery plans currently under consideration by the United States and many other countries seem to be concentrated on the possibility of using expansionary fiscal and monetary policies alone. However well coordinated, this approach will not be sufficient. What's required, instead, is a worldwide recovery of output, combined with sustainable balances in international trade