The Reforms China Needs

Under pressure from Donald Trump’s tariffs, China might be tempted to try to stimulate aggregate demand using short-term measures, much as it did after the 2008 global economic crisis. A better strategy, however, would be to focus on structural reforms. This year marks a decade since the global financial crisis erupted. For the United States, 2018 is very different from 20 … http://bit.ly/2DCgScw

The Trade Wars of Codependency by Stephen S. Roach

Whatever the source, the conflict phase of codependency is now at hand. China is changing, or at least attempting to do so, while America remains stuck in the time-worn mindset of a deficit saver with massive multilateral trade deficits and the need to draw freely on global surplus saving to support economic growth. Codependency never ends well in personal relationships. … http://bit.ly/2zsHoBA

China’s Currency Catch-22

As the Trump administration ratchets up tariffs on Chinese goods, many observers have begun to wonder if China will respond with a strategic currency devaluation to boost the competitiveness of its exports. But, despite despite possessing a powerful financial and monetary arsenal, Chinese policymakers have no good options. Officials at the People’s Bank of China (PBOC) have … http://bit.ly/2Lylqjm

The Western Illusion of Chinese Innovation

Many Western observers – in media, academia, and government – now portray China as a fierce competitor for global technological supremacy, with top-down industrial policies that are enabling it to stand virtually shoulder-to-shoulder with Europe and the US. This is a serious misrepresentation. Over the past two decades, China has been achieving rapid technological progress, … http://bit.ly/2v2VG9z

From Dollar to e-SDR

The rise of cryptocurrencies has created a unique opportunity for market forces to spearhead a shift toward a truly neutral reserve asset. With the leadership of the US – the issuer of the main international reserve currency – more unpredictable than ever, it is an opportunity that should not be missed. As the risk of a US-China trade war mounts, creating a geopolitically … http://bit.ly/2HMZFzm