The Pains of Global Rebalancing

The video discusses the current global economic landscape, focusing on the role of the US as the buyer of last resort and the challenges faced by export-led economies like China, Japan, and Germany. It highlights the need for these countries to reorient their production strategies due to the limitations of relying solely on exports. The video also delves into the structural constraints in China, such as underdeveloped consumption infrastructure and a weak welfare system, which lead to high savings rates and hinder domestic consumption growth.

What challenges do poorer countries face in reorienting their production for export-led growth?

Why is infrastructure important for increasing consumption in a country?