Anne Krueger, 27 November 2009

Collapsing trade worsened the crisis, but trade’s revival could do much to shore up prospects for a sustained upturn. Unlike many stimulus measures, reviving the Doha Round and strengthening the open multilateral system could be achieved with little, if any, fiscal cost. It is also essential to ‘rebalance’ the global economy. Successful emerging markets and other countries with large current account surpluses will have to shift gradually toward more reliance on domestic demand and less on export growth.


CEPR Policy Research