The ‘Nuclear Option’: Currency Edition

As someone who follows international economics pretty closely, I’m surprised I didn’t find this Dean Baker op-ed until today. I’ve previously asked what the United States could do to convince the Chinese government to let the yuan appreciate. Baker doesn’t so much want to convince China, but rather beat China at its own game. He … Continue reading

Yuan a bubble?

It’s everyone favorite time of the year: the Asia-Pacific Economic Cooperation Economic Leaders’ Meetin!* President Obama heads to the summit and his first official visit to China next week. Obama’s trip will be dominated by economic concerns especially trade, and in the case of China, exchange rates. Simon Johnston thinks Obama can convince the Chinese … Continue reading

Sayonara, Mr. Yen

Before China kept its currency artificially devalued, Japan was the biggest advocate of a weak currency. Eisuke Sakakibara, Japan’s vice minister of finance for iternational affairs, was such a staunch proponent of a weak currency that he earned the nickname Mr. Yen. Japan’s export led growth was predicated on a weak yen, so its interesting … Continue reading

Simon Johnson to China: Do it, I dare ya

Hillary Clinton and Tim Geithner continue their high level talks with the Chinese government, the Strategic and Economic Dialogue, today. The meetings are being heralded as a replacement for the G8 summits of the past (some observers have called the US-China relationship the “G-2”). The two countries will be discussing a whole host of issues … Continue reading