January 2010

Célestin Monga (*) has published (Januray 2010) a 55-page monograph titled “Hegelian Macroeconomics: The Dialectics of Global Imbalances” in the World Bank’s series of Policy Research Working Papers (WPS 5175).

The paper argues that China and the United States have become economically so interdependent that fears of any abrupt change in their current Nash equilibrium situation may be exaggerated. The paper also uses Hegel’s parable of the development of self-consciousness to explain the dynamics between the two countries. His analysis of lordship and bondage (also known as the master-slave dynamics) provides a good framework for analyzing the dialectics of recognition and acknowledgement that currently characterizes the macroeconomic relationships between the United States and China.

The paper can be accessed at http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2010/01/12/000158349_20100112141635/