The United States and the World Economy: Foreign Economic Policy for the Next Decade
The Institute released its major new study The United States and the World Economy: Foreign Economic Policy for the Next Decade at a day-long conference held February 9, 2005. The book comprises chapters on each of the key topics facing the United States over both the short and longer runs, ranging from the immediate dollar and energy problems to the structural implications of the rise of China and other large emerging markets. It also includes new estimates of the quantitative impact of globalization on the US economy and a summary chapter proposing a new overall strategy for US policy.
The conference included presentations on some of the most important components of current US foreign economic policy and hence of the new study. Former IMF chief economist Michael Mussa suggests how the global payments imbalances can be resolved without a dollar crisis and without severely dampening world growth. Energy expert Philip Verleger recommends a course of action to deal with both the immediate and underlying price and supply problems in the oil markets. Senior fellow Gary Hufbauer presents new estimates of the impact on the United States of its integration with the world economy since 1945, which conclude that our standard of living is $1 trillion per year higher as a result and that we could gain another $500 billion per year by moving to global free trade. Nicholas Lardy addresses the China issue. Jan Boyer and Edwin M. Truman report their results on the large emerging markets. Director C. Fred Bergsten wraps up with a summary of the overview chapter. (Trade policy issues were addressed in depth at the conference "US Trade Policy in 2005," held later the same month.)