Dirk Ehnts — Where I disagree with Michael Pettis

Recently, Michael Pettis has written a book on Chinese rebalancingand published an article at Foreign Policy on the euro zone crisis. While I have read through the first chapters of his book and will publish a critique at a later stage, I want to take issue with his article. While his Saldenmechanik (balance of payments mechanics) is the right approach, his neglect of endogenous money leads to the wrong causalities and therefore the wrong conclusions.

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Where I disagree with Michael Pettis
Dirk Ehnts | Berlin School of Economics and Law