GLOBAL ECONOMIC MARKETS

Earlier this year, the Baker Institute published a set of policy recommendations that aim to provide guidance to President Obama on a range of significant public policy issues, from energy to tax reform. Within each issue area, institute fellows and scholars offer an analytic overview of opportunities, challenges and possible solutions.

We will be highlighting each of the essays in a series of posts in this space. This week Russell Green, Will Clayton Fellow in International Economics, considers a productive strategy for the U.S. in light of international financial markets that will remain at the mercy of developments in the Eurozone crisis for at least 2013. Green suggests shoring up defenses against a major crisis, while focusing on longer-term developments, "namely the rise of emerging market economies as the dominant sources of global growth over the next several decades."

"Fostering a cooperative relationship with these rising powers during the next four years will pay dividends for the governance of the international financial system for years to come," he writes.

Read more in PDF icon"U.S. Economic Diplomacy: Adapting to Shifts in Global Economic Powers."