The Triad in Crisis: What We Learned and How it Will Change Global Cooperation

Posted: 15 Feb 2010

See all articles by Peter A. Petri

Peter A. Petri

Brandeis University - Brandeis International Business School; Brookings Institution; Brandeis University - Department of Economics

Michael G. Plummer

Johns Hopkins University

Date Written: June 15, 2009

Abstract

This paper reviews the propagation of the 2008-2009 financial crisis through China, Japan and the United States (the "triad") and analyzes the responses of these countries from the viewpoints of achieving recovery and returning to a growth path that will be free of the imbalances that limit long-term sustainability. For a variety of reasons, the triad countries are both key protagonists in the crisis, and central agents in the recovery from it. Greater cooperation among them will be important to ensure that the recovery that emerges leads to a sustainable growth path. Their actions are important also because they can have great influence on the responses of other countries. The paper concludes with an overview of areas in which cooperation is especially desirable.

Keywords: Financial Crisis, Economic Cooperation, Rebalancing, China, Japan

JEL Classification: E32, E61, F15

Suggested Citation

Petri, Peter A. and Plummer, Michael G., The Triad in Crisis: What We Learned and How it Will Change Global Cooperation (June 15, 2009). Journal of Asian Economics, Vol. 20, No. 6, 2009, Available at SSRN: https://ssrn.com/abstract=1552805

Peter A. Petri (Contact Author)

Brandeis University - Brandeis International Business School ( email )

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Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
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Brandeis University - Department of Economics

Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

Michael G. Plummer

Johns Hopkins University ( email )

Via Belmeloro 11
40126 Bologna
Italy

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