Policy Innovations

The global economy is suffering from severe shortage of demand. In developed economies that shortfall is explicit in high unemployment rates and large output gaps. In emerging market economies it is implicit in their reliance on export-led growth. In part this shortfall reflects the lingering disruptive effects of the financial crisis and Great Recession, but it also reflects globalization's undermining of the income generation process.

FLYNT LEVERETT: ..."As Americans, I think we also need to face up to the flip side of the rise of the rest, which is to some degree a decline in American standing and influence in various international arenas. I would argue that the United States is in an historically unprecedented condition. It emerged from the Cold War as this unquestioned global hegemon.