In The News

Currency Manipulator?

Ronald I. McKinnon April 24, 2006
As China’s bilateral trade surplus with the US continues rising in record-breaking fashion, there has been growing speculation that Beijing manipulates currency-exchange rates in its favor. However, Stanford economist Ronald McKinnon argues that China’s motivation for pegging the renminbi is to secure monetary stability rather than achieve an undue mercantile advantage in world export markets....

China’s Investors Are to Get Freer Hand Abroad

James T. Areddy April 20, 2006
On the eve of Chinese President Hu’s visit to the US, China made a gesture toward a more open, market-based currency that pleases the US, but falls short of revaluing of the yuan. China will allow companies and individuals to make financial investments overseas, which could influence the country’s currency exchange-rate system as well as the value of yuan. China has kept the yuan’s value...

The US and China: Friends or Foes? – Part II

Daniel H. Rosen April 20, 2006
The US and China are the world’s two largest economies – but the citizens of the two nations differ in terms of financial habits. For example in 2005, savings accounted for at least 30 percent of Chinese household income while the US registered no savings at all. In the second of this two-part series, economist Daniel H. Rosen analyzes the implications of China’s increasing interdependence with...

Kazakhstan Entertains Grand Economic Development Plan

Melvut Katik April 17, 2006
Oil-rich Kazakhstan has a goal to become a major global economic force. Its strategy to drive growth depends on regional cooperation, particularly with Russia and to a certain degree China. Another major goal for Kazakhstan is accession to the WTO. Kazakhstan already possesses immense oil and gas resources, and global financial experts are bullish on the nation, with one analyst noting that the...

US Is Its Own Worst Enemy

Kevin Rafferty April 12, 2006
Opposition to the US creates both real and imagined threats to national security, yet the biggest threat for the US and the world comes from US policy and its formulators, both Congress and President Bush. After 9/11, the world displayed sympathy for the US, exemplified by the “Le Monde” headline – “We are all Americans.” Yet President Bush squandered cooperation with unilateral actions that...

Amid Tension with US, China Faces Protectionist Surge at Home

Kathy Chen April 11, 2006
The US and Europe are not alone with citizens demanding protection of jobs, industry and a way of life. Protectionism is emerging in China, too, with various interest groups expressing wariness about increased foreign buy-outs of Chinese companies. US investments in China have increased dramatically since 1980, when only 23 firms represented $120 million in investment, whereas in 2005, 49,000...

Managing Globalization: In Asia, How to Manage the Boom?

Daniel Altman April 10, 2006
Southeast Asian nations have grown fat with international trade – but are they growing too fat? As the region approaches another period of rapid expansion, fears abound that the region’s economy could grow out of control. Demand for Southeast Asian products runs high, and an overheating economy could bring inflation and currency problems, overpowering government attempts at fiscal and monetary...