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So working with China in a way that can protect our interests is less about direct confrontation of the sort we remember from the Cold War - when the U.S. knew it faced a very dangerous enemy - and more about what we might call co-evolution. The phrase comes from biology...
It follows that any actions by China that threaten global stability have to be rebuked. The habit of trying to make China cooperate only by granting concessions has not worked. Co-evolution suggests a different approach. It acknowledges the importance of giving China a say in how the world develops...
When U.S. Treasury Secretary Tim Geithner last visited Beijing about a year ago, he elicited guffaws from an audience of college students when he assured them that China's massive investments in U.S. government debt was sound. Today's spur of the moment trip to Beijing, where he met with...
Both politically and economically speaking, this gets it about right. The reason it's in China's economic interest to allow the RMB to rise a bit is plain enough: At a moment when much of the world is still trying to climb out of a disinflationary hole, China's...
The question is whether anything other than a massive, one-off revaluation in the RMB versus the dollar - something that is not in the cards - will have any significant impact on employment in the U.S. or Europe. Economists differ around the edges of this debate, but most agree that a...