A port worker releases containers for unloading at Felixstowe in southeast England. The four reserve currency countries – the dollar, yen, euro and sterling – have an advantage. As long as they are willing to run current account deficits, there will be little inflation because the world economy has huge excess capacity and surplus savings. Photo: Reuters

Why the winners of our global economic system must spend to lift slowing growth

Andrew Sheng says the reserve currency countries, who gained the most from the system, should keep the game going by bearing higher credit risks

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A port worker releases containers for unloading at Felixstowe in southeast England. The four reserve currency countries – the dollar, yen, euro and sterling – have an advantage. As long as they are willing to run current account deficits, there will be little inflation because the world economy has huge excess capacity and surplus savings. Photo: Reuters
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