Sergio de Nardis, 02 December 2010

The global imbalances debate regularly singles out China as the champion of exporting countries, often neglecting the role of Germany. This column argues that if Germany does not adjust, it will keep dragging down EU growth. Europe’s other countries, for their part, should silence their rhetoric on manufacturing and go back to focusing on the service sector.

Ernesto Zedillo, 18 November 2010

How should we judge the 2010 Seoul G20 meeting? A failure, according to this column. It argues that the G20’s failure to coordinate economic policies puts the global economy at risk and that there is little in the G20 Seoul Action Plan addressing the tensions that preceded the summit.

Biagio Bossone, 15 November 2010

The G20 meeting in Seoul last week still leaves many issues unresolved. This column addresses the G20 leaders and calls for global governance that can meet the needs of a global economy.

Andreas Freytag, Stan du Plessis, 12 November 2010

President of the World Bank, Robert Zoellick, caused a stir this week by hinting at a need to return to the gold standard. While supporting the drive for pro-growth policies and the desire to maintain an open international trade system, this column argues that a return to gold would struggle to achieve this and could even be a destabilising force.

Richard Portes, 04 November 2010

The threat of a currency war between the US and China is one of the main concerns for the G20 ahead of this month’s meeting in Seoul. This column say that while policymakers appear to grasp some of the issues, they underestimate the impact of quantitative easing by large economies on exchange rates worldwide.

Philippe Legrain, 02 November 2010

While the debate over global imbalances often focuses on China, this column argues that the biggest threat to the world economy comes from the other side of the seesaw – the US.

Volker Nitsch, Helge Berger, 02 November 2010

What can policymakers do to redress the global imbalances? This column presents evidence from 18 European countries over the past 60 years. It finds that while permanently fixed nominal exchange rates often result in large and lasting trade imbalances, these imbalances usually reflect a difference in trade competitiveness that can be addressed through structural and macroeconomic policies.

Fred Bergsten, 01 November 2010

Yiping Huang recently argued that the US would not win a currency war over global imbalances. This column agrees that a currency or trade war would be lose-lose. But it says that such a conflict is inevitable unless the root causes of the growing imbalances are addressed

Helmut Reisen, 01 November 2010

The debate over global imbalances has a sharp focus on China. But this column says the debate is missing a crucial point: that China’s growth has been good for poor countries, so that a renminbi appreciation slowing Chinese growth will also hurt many other poor economies.

Alan Auerbach, Maurice Obstfeld, 23 October 2010

As the debate over China’s exchange-rate policy and the US response intensifies, this column argues that a large Chinese revaluation – whether forced of voluntary – will not be a free lunch for the US. Drawing on a theoretical cost-benefit analysis, it suggests that if the US wants to create jobs at the lowest costs, it should first consider further fiscal expansion.

Joshua Aizenman, Jaewoo Lee, Vladyslav Sushko, 22 October 2010

Exchange-rate policy is emerging as one of the most controversial issues from the global crisis. This column looks at how emerging markets have responded to exchange-rate pressures over the last decade. Among its findings is that emerging markets’ hoarding of international reserves is far better explained by financial factors than by trade concerns, both before and during the crisis.

Yiping Huang, 20 October 2010

On 19 October, the Chinese central bank announced a series of rate hikes. This column argues that the moves were aimed at combating domestic inflation and addressing the risks of an asset bubble.

Ricardo Caballero, 19 October 2010

Emerging markets with large trade surpluses are reluctant to heed calls for them to help with global aggregate-demand rebalancing by appreciating their currencies. They fear harm to their export-led development and sudden reversals of capital inflows in the future. Here one of the world’s most innovative macroeconomists suggests a way to square the circle: A dual exchange-rate system that would shield their exporters while fostering imports.

Yiping Huang, 19 October 2010

The ongoing global imbalances has strengthened calls for the US to declare trade war with China. This column argues that the US did not emerge victorious from the last currency war with Japan, and against China the chances are even slimmer. Instead the upcoming G20 meeting should focus on a broad range of structural adjustments from both sides.

Gary Hufbauer, Kati Suominen, 13 October 2010

The global crisis has rocked people’s faith in globalisation. This column introduces a new book arguing that, despite taking a step back, globalisation is one of the most travelled routes the world has known for spreading growth and prosperity. It provides policy recommendations for renovating that road dealing with the WTO, social security, global imbalances, and foreign direct investment.

Olivier Blanchard, 12 October 2010

A “strong, balanced, and sustained world recovery” as demanded by the G20 is a daunting challenge for policymakers. This column argues that two rebalancing acts are required: internal rebalancing – replacing government spending with private-sector demand, and external rebalancing – addressing the global imbalances between exporting and importing countries. These two rebalancing acts, it adds, are taking too long.

Gérard Roland, 09 October 2010

How should China respond to the threat of tariffs from the US? This column provides a solution that could result in the desired appreciation of the renminbi and at the same time allow China to take the lead on climate change.

Chunding Li, John Whalley, Yan Chen, 08 October 2010

As the debate over global imbalances develops, this column asks whether the discussion is based on faulty data. Using data from the US, Japan, Germany, and the Czech Republic, it argues that not taking due account of foreign affiliate sales leads to a warped view of trade in goods and services.

Willem Thorbecke, 06 October 2010

The US-China currency dispute remains heated. This column argues that if a real appreciation in the Chinese currency is not achieved through exchange rate adjustment, it will happen through inflation in China and deflation in the US. It says a better Chinese policy mix would involve nominal appreciation of the renminbi combined with absorption-increasing policies such as developing human infrastructure.

Joshua Aizenman, Rajeswari Sengupta, 05 October 2010

Are China and Germany both responsible for the global imbalances? Using four decades of current-account data, this column argues that the role of the US should not be overlooked. A rise in the US’ current-account deficit is matched one for one with a rise in China and Germany’s surpluses. But this relationship – and the global imbalances with it – may well be coming to an end.

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