In The News

More Countries Adopt China’s Tactics on Currency

David E. Sanger, Michael Wines October 11, 2010
A proposal in the US Congress would impose tariffs on nations that keep their currencies artificially low. “But many around the world fear getting trampled as the United States and the Chinese battle each other,” explains this article in the New York Times. Japan, Brazil and other nations follow China’s lead, taking measures to devalue their currencies and boost exports as internal demand...

Once a Winner, China Sees Globalization’s Downside – Part I

David Dapice October 11, 2010
Globalization is a two-way street. Countries cannot endlessly send products out into the world and build up reserves without a push back – benefiting from the world without giving back something – explains this two-part YaleGlobal series. China’s thriving economy depends on exports. By holding down the value of its currency, Beijing attracted foreign investors, reduced prices for global consumers...

Why the Financial Crisis and What Is the Way Out

Carmen Reinhart October 7, 2010
In an interview with Nayan Chanda, Professor Carmen Reinhart, co-author of This Time Is Different: Eight Centuries of Financial Folly, discusses the causes behind the current financial crisis and the measures needed to recover and grow. – YaleGlobal

Wen Warns Against Renminbi Pressure

Alan Beattie, Joshua Chaffin, Kevin Brown October 7, 2010
With the world’s largest population and concentration of manufacturing, China cannot revalue the renminbi quickly, contends Wen Jiabao, China’s premier. And pressuring China to do so could lead to global economic “disaster” is his assessment as reported by the Financial Times. Currency revaluation would lead to job loss and social unrest with Chinese firms already operating on narrow profit...

Asia's Currency Market Shakeup

Philip Bowring September 30, 2010
The economies of Asian nations are growing, but currency coordination throughout the region could provide greater certainty and boost. China is not alone in manipulating currency values, points out Philip Bowring for the Asia Sentinel. With China imposing strict controls on yuan bonds that could raise the value of renminbi, Japan, South Korea, Taiwan, have little choice but to try suppressing the...

Challenges for a Squabbling Europe – Part I

Katinka Barysch September 22, 2010
Even after the devastation of the Second World War, bitterly fought by Europeans, the continent united in rebuilding its economy. Led by Germany and France, Europe steadily embarked on a series of agreements that gradually pooled energy and economic resources, embraced trade, reduced border controls and developed a common currency. Now, as internal challenges combine with external competition,...

Banks Back Switch to Renminbi for Trade

Robert Cookson September 1, 2010
As China’s economy continues to grow, the largest banks from around the globe seek favor and rapid profits there. HSBC relocated its chief executive from London to Hong Kong and, along with Citigroup and some other banks, HSBC offers discounts for companies that use the renminbi rather than the dollar for trading. “With renminbi trade settlement volumes expected to increase rapidly, banks are...