*The End of Influence*

The subtitle is What Happens When Other Countries Have the Money and the authors are Stephen S. Cohen and Brad DeLong.  Here is an excerpt:

The Asian export-led growth model must — over time — transform itself to domestic consumption and prosperity models.  The American borrow-and-import model will also have to shift — again, this takes considerable time — to a model of consumption-at-the-level-you-produce.  And the need to keep the confidence of those who have the money that their money is well placed in the United States serves as a constraint on U.S.  policy in a way that it has never been before.

In the last three paragraphs of the book the authors describe the various stimulus attempts as something that will "buy time," but will not be sufficient to alter this basic trajectory.


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