When we heard that economist, scholar, author and New Canaan resident Stephen Roach was coming to New Canaan Library to talk about his widely discussed new book — “Unbalanced: The Codependency of America and China” — we immediately sought to put some questions to Roach himself: His history and involvement in our town, entry into the field of economics (where he is a prominent figure), and a bit about the book itself.
New Canaan resident Stephen Roach is speaking at 8 a.m. next Wednesday, May 21, about his new book, “Unbalanced: The Codependency of America and China.” It’s too soon to know how academia at large will take the book (it’s been reviewed by the NY Times and Wall Street Journal, among other notable publications), Roach says: “The wheels of deliberation turn very slowly in the Ivory Tower.”
We discovered that Roach is a fixture in the chicken line at New Canaan’s well-loved and recently held May Fair, and found him frank and engaging: “In a codependent relationship, the scorned partner usually ends up in serious trouble,” Roach says of the relationship between the two nations in his book. “Call it America’s wake-up call.” Our full exchange can be found below.
A senior fellow at Yale University and former chairman of Morgan Stanly Asia, he’sspeaking at 8 a.m. next Wednesday, May 21 as part of the library’s “Distinguished Authors Series on Economics,” presented in partnership with the New Canaan Chamber of Commerce, Alliance of Business Professionals and Elm Street Books.
New Canaanite: Hello. The library staff forwarded some information about your professional background and “Unbalanced,” which we want to hear more about. If possible, can we talk first about you and New Canaan. How long have you lived in town? Are there any local organizations you’re connected to as a member, supporter or volunteer that you can talk about? I saw you had been scheduled to talk in November about China during the “Co-Creators” series at (our May Fair host) St. Mark’s. What’s your favorite food item at the May Fair?
Stephen Roach:I have lived in New Canaan, with my wife Katie, for 27 years. We have a blended family of six daughters. I have spoken at the Senior Men’s Club several times, as well as at various St. Marks speakers series, including two last fall. I am a longstanding May Fair volunteer, and have worked the chicken line for a number of years.
You have a lot of formal education, including a doctorate degree in Economics from NYU. I’m interested to hear more about what drew you to economics and specifically, to your focus in China? (Many of us non-economists knowf us think of Paul Samuelson’s famous joke: “Wall Street indexes predicted nine out of the last five recessions.”
I was a slow starter in economics — didn’t really hit my stride until my first job at the Federal Reserve Board in Washington, when I became fascinated with the intersection between economics, policy, and financial markets. That led me to Wall Street and a challenging and stimulating 30-year career with Morgan Stanley.
![New Canaan resident Stephen Roach's book, "Unbalanced: The Codependency of America and China." Says Roach of the book: "Just as in human relationships, there is nothing stable about the economic version of codependency. Unless the [United States] and China do a better job of coping with their imbalances — America has to save more and consume less whereas China needs to do the opposite, save less and consume more — they will be headed for trouble."](http://nctest.proxy02.mageenet.net/wp-content/uploads/2014/05/Unbalanced.jpg)
New Canaan resident Stephen Roach’s book, “Unbalanced: The Codependency of America and China.” Says Roach of the book: “Just as in human relationships, there is nothing stable about the economic version of codependency. Unless the [United States] and China do a better job of coping with their imbalances — America has to save more and consume less whereas China needs to do the opposite, save less and consume more — they will be headed for trouble.”
Just as in human relationships, there is nothing stable about the economic version of codependency. Unless the [United States] and China do a better job of coping with their imbalances — America has to save more and consume less whereas China needs to do the opposite, save less and consume more — they will be headed for trouble. Right now it looks like China gets this message while the United States is in denial. In a codependent relationship, the scorned partner usually ends up in serious trouble. Call it America’s wake-up call.
Finally, let’s talk about your May 21 breakfast program at the library. For some, it will be a chance to hear about the relationship between the United States and China directly from you, while others certainly will have read your book and may have some pointed questions. How has your book been received by your counterparts in academia and how has it been received your popular audience? (Thank you.)
Too soon to tell how academia will take it — the wheels of deliberation turn very slowly in the Ivory Tower. I have run many parts of the book through various seminars at Yale — and it has led to lively debates. The book has been widely reviewed so far — New York Times, New York Review of Books, and recently in the Wall Street Journal to name a few. I have recently completed a 3-week book tour through Asia and will do the same in Europe next month. Unbalanced has been widely cited and reviewed in the international press, especially in China, where a Chinese language edition is due out in mid-July.