Chapter from America and a Changed World: A Question of Leadership

Senior Research Fellow, Global Economy and Finance

This chapter from the book America and a Changed World: A Question of Leadership assesses America's management of the global economy.

The chapter examines the fundamentals of American economic power, the extraordinary years for the US economy that overlapped with the administrations of Bill Clinton and George W. Bush, the model of growth and the building of global financial imbalances. This is followed by a discussion of whether the financial crisis of 2007-09 has aggravated the structural weaknesses of the American economy and accelerated the relative decline of the United States. The chapter then considers the role of the United States as primus inter pares in a multipolar economic order, and its relations with the emerging economic powers. The chapter concludes by advocating a more active and responsible role for the United States in setting an integrated agenda for the reform of the international financial architecture.