Deficit countries are neglecting the needed—and more difficult—reforms at home and fueling protectionist sentiment abroad with their focus on external trade imbalances and their calls for major surplus economies to increase demand. […]
Growth in emerging economies has slowed from torrid post-crisis rates, but remains high and will likely mitigate—but not fully compensate for—a sharp slowdown in advanced countries. […]
Private demand is not yet strong enough in advanced countries to compensate for the drag to come from fiscal stimulus withdrawal. Large countries that can afford to delay the withdrawal should do so. […]
The debate over China’s currency propagates dangerous myths about both the Chinese economy and the potential benefits of a more expensive renminbi for the United States. […]
The dispute between the United States and China over the value of China’s renminbi distracts both countries from more important reforms. Policy makers should prioritize maintaining a collaborative relationship over staging another fruitless debate. […]
Skyrocketing government debt is emerging as a new risk to the global recovery, prompting calls for stimulus withdrawal. Sustaining growth, however, should remain policy makers’ top priority. […]
While China’s role in global trade is continuing to grow, the dollar, not the yuan or the euro, will remain the world’s leading reserve currency for the foreseeable future. […]
The recent emphasis on the trade imbalance between the United States and China—which was high on President Obama’s agenda in Asia this week—is largely misplaced and diverts attention from more pressing domestic problems. […]
According to the World Bank, global economic growth is likely to contract by two percent this year. With export markets shrinking, many have questioned whether China’s domestic economy can supplement the revenue gap. […]
Global depression is not the most likely scenario to result from the financial crisis, but it’s foolish to ignore the possibility. At the G-20 meeting this week, leaders must increase domestic stimulus measures, triple the IMF’s resources, and renew their commitment to avoid protectionism. […]
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