The large U.S. budget and trade deficits are of major concern both in America and around the world. This monograph concludes that they cannot be sustained, and examines how to get the United States-and the World as a whole-back into equilibrium. It argues that major changes in the mix of fiscal and monetary policies in America and other major industrial countries are essential to avoid another global recession and a new debt crisis. The study outlines a cooperative policy response by America and its partners to avoid such an outcome and suggests how to respond to the crisis-if it does occur-in a manner that could pave the way to a more stable international monetary system. Now available directly from: IIE11 Dupont Circle, NWWashington, DC 20036Tel: (202) 328-9000
