In this episode of The Sound of Economics, host Rebecca Christie speaks about global imbalances with Bruegel Director Jeromin Zettelmeyer and Beatrice Weder di Mauro, director of the Center for Economic Policy Research (CEPR). To launch the 2026 edition of the CEPR Paris report, they discuss why trade deficits and surpluses are soaring and what risks should worry us most. US external and public debt is at a historic high, raising new questions about the dollar as a safe haven. China seems on track to export even greater quantities at low prices, undermining the viability of industry everywhere else. Is a soft landing still feasible? What are the implications if not?

Relevant research:

• Rey, H., B. Weder di Mauro and J. Zettelmeyer (eds) (2026), Paris Report 4: The New Global Imbalances, CEPR Press, Paris and London.