When major economies like the US maintain their current approach to global saving imbalances—and the EU may follow suit—the international trading system creates a peculiar dynamic. What economists call the Kalecki paradox kicks in: individual countries get rewarded for policies that actually damage the broader system's growth. It's a classic collective action problem—nations acting in self-interest end up undermining the whole. The question is whether this pattern holds as more players enter the game.
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HodlKumamon
· 1h ago
The Calitzky Paradox, to put it simply, is that every country is calculating its own small account, ultimately turning the global economy into a fragmented mess(´;ω;`) Data shows that once this imbalance pattern forms, it is very difficult to break, and the more participants there are, the worse it gets...熊熊 thinks this is like a collective prisoner's dilemma—everyone wants to betray but no one dares to be the first to give up.
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NotFinancialAdviser
· 22h ago
Rolling up hurts both oneself and others; everyone plays separately, and in the end, no one can win.
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LayerZeroEnjoyer
· 01-07 17:48
Another old-fashioned economics lecture... Basically, every country just wants to get a good deal.
The US takes a quick profit and leaves, the EU watches covetously and wants to imitate, but in the end, no one benefits.
Calaiski Paradox? It sounds sophisticated, but it's really just a rebranded Prisoner's Dilemma.
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GateUser-3824aa38
· 01-07 08:58
It's the same old trick again; everyone wants to get a bargain, and in the end, we all end up screwed.
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SandwichDetector
· 01-07 08:58
Basically, everyone is doing their own thing, and in the end, everyone ends up messing it up.
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PumpStrategist
· 01-07 08:57
This is a classic game theory deadlock: all countries want to exploit the benefits but no one wants to be cut off, ultimately leading everyone into the trap together.
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AirdropHunter420
· 01-07 08:51
Basically, everyone does their own thing, and in the end, everything collapses... The US's old tricks, the EU learns very quickly.
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AltcoinMarathoner
· 01-07 08:48
ngl the tragedy of the commons playing out in macro is just like watching a bull run get rug pulled... everyone's running their own race but nobody's thinking about the finish line anymore
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ChainWallflower
· 01-07 08:36
It's the same old story again, big countries exploit and small countries pay the price. How much longer can this game go on?
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BlockBargainHunter
· 01-07 08:30
Basically, everyone is just sweeping their own front yard snow, and in the end, we all end up screwed together.
When major economies like the US maintain their current approach to global saving imbalances—and the EU may follow suit—the international trading system creates a peculiar dynamic. What economists call the Kalecki paradox kicks in: individual countries get rewarded for policies that actually damage the broader system's growth. It's a classic collective action problem—nations acting in self-interest end up undermining the whole. The question is whether this pattern holds as more players enter the game.