Articles by Michael Spence



How a Reckless U.S. Threatens Global Stability

While the world's developed countries face growth and employment shortfalls, developing countries are confronting huge challenges in adapting to increasingly volatile capital flows. They are adjusting their growth patterns to sustain economic development.

Problems of Domestic Policies in a Global World

Around the world, policies, technologies and extended learning processes have combined to erode barriers to economic interaction among countries. Pick any indicator: trade relative to global gross domestic product, capital flows relative to the global capital stock, and so forth Ч all are rising.

America's 8-Cylinder Economy Running on 5

In the dog days of summer, Milan is quieter than many European cities. The locals are away, and, unlike Paris or Rome, tourists do not take their place.

China Looking for New Ways to Sustain Growth

China's growth has slowed considerably since 2010 and it may slow even more Ч a prospect that is rattling investors and markets well beyond China's borders.

Preparing for the U.S.-China Strategic Union

The California summit between U.S. President Barack Obama and Chinese President Xi Jinping on June 7-8 comes at a time of heightened tension between the world's two preeminent powers.

Rebalancing the Government's Balance Sheet

It is important that more attention is now paid to public liabilities.

Emerging Markets Will Remain a Growth Engine

With most of the world focused on economic instability and anemic growth in the advanced countries, developing countries, with the possible exception of China, have received relatively little attention.

U.S. Must Lead Effort to Treat Energy Myopia

I have been surprised by the recent coverage in the U.S. media of gasoline prices and politics. Political pundits agree that presidential approval ratings are highly correlated with gas prices.

The Free Market and the Sustainability Mindset

Markets and capitalist incentives have great strengths in promoting economic efficiency, growth and innovation. And as Ben Friedman of Harvard University argued persuasively in his 2006 book "The Moral Consequences of Growth," economic growth is good for open and democratic societies.

A 5-Year Plan to Change China's Growth Path

China is poised to begin its transition from middle-income to developed-country status. Only five economies successfully managed this transition while sustaining high growth rates, and they are all in Asia: Japan, South Korea, Taiwan, Hong Kong and Singapore. No country of China's size and diversity has ever done so.

5 Steps Forward for the Global Economy in 2011

The worst of the financial and economic crisis seems to be over. But continued high growth in emerging markets depends on avoiding a second major downturn in the advanced economies, which continue to absorb a large, although declining, share of their exports.

Emerging Markets Can Save the World

High growth and financial stability in emerging economies are helping to facilitate the massive adjustment facing industrial countries. But that growth has significant longer-term implications.

End to Fast Growth for Developing Countries

The current credit crisis has led to scaled-back projections for growth around the world. Governments and central banks are responding to damaged balance sheets and credit lockups in an attempt to limit extreme harm to their economies outside the financial sector.