the U.S. would experience a sudden stop of capital flows, which would unavoidably drag the world economy into a deep … instead that the root imbalance was of a different kind: The entire world had an insatiable demand for safe debt instruments … of exposing the economy to a systemic panic. This structural problem can be alleviated if governments around the world …

industrialzation in Europe and later on in North America changed the pattern of demand in the world market. The two World wars and … Great Depression had shifted the economic power center from Europe to USA. The major political division of the world after … Second World War was an essentially that between the west (led by the United States) and the east (led by the soviet …