7: The Great Rebalancing: We're all in it together

Michael Pettis interviewed by Viv Davies, 19 August 2013Michael Pettis talks to Viv Davies about his recent book, "The Great Rebalancing: Trade, Conflict and the Perilous Road Ahead for the World Economy". Pettis explains how China has maintained massive, but unsustainable investment growth by artificially lowering the costs of capital, and how Germany may be endangering the euro by favouring its own development at the expense of its neighbours. Pettis maintains that we are currently undergoing a critical rebalancing of world economies, and that much of the debate about the global crisis has been caught up in ‘muddled thinking’. The interview was recorded in London on 12 February 2013.