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 Pettis

Evidence 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 CrisisThe Monetary Matters Network
Created: 8/11/2026, 7:43:21 AM

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