Joan Robinson warned in the 1930s that persistent trade surpluses are unsustainable; eventually deficit countries will try to regain control of their external accounts, leading to what will be called trade wars and trade contraction, but which are actually inevitable adjustments to correct global imbalances.
factualpending
Speaker
Michael PettisEvidence Quote
“Joan Robinson wrote about this in the 1930s...at some point the deficit countries will try to regain control...it's inevitable”
Source
Michael Pettis: China’s Consumption Crisis Is The World’s Crisis— The Monetary Matters NetworkCreated: 8/11/2026, 7:43:21 AM
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