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    "Albert Keidel"
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Source: Getty

In The Media

China and the U.S. Economy

Despite Treasury Tim Geitner's recent comments that China is manipulating its currency, it is difficult to assess China's monetary policies because its economy is in such flux.

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By Dr. Albert Keidel
Published on Jan 24, 2009
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The Asia Program in Washington studies disruptive security, governance, and technological risks that threaten peace, growth, and opportunity in the Asia-Pacific region, including a focus on China, Japan, and the Korean peninsula.

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Source: Washington Journal

Secretary of the Treasury Tim Geitner recently stated that China has "manipulated" its currency to gain an upper hand in its trade relations with the United States.  Albert Keidel appeared on C-SPAN's Washington Journal to examine that claim and offer his thoughts on what the Obama administration's policy towards China will look like.

In six months, the Treasury Department of Treasury will report which countries are unfairly manipulating their currencies to achieve trade benefits.  Keidel explained that it is difficult to assess whether China is manipulating the yuan since its economy is in such flux right now.  He argued, furthermore, that it is difficult, if not impossible, to identify what the "proper" dollar-yuan exchange rate should be; he noted that while the yuan has indeed appreciated with respect to the dollar, it has depreciated compared to the euro. 

Keidel expressed confidence that the Obama administration will continue the Strategic Economic Dialogue that Hank Paulson stewarded under the Bush administration, arguing that that dialogue has opened up high-level exchanges between American personnel and their appropriate counterparts in Beijing.

About the Author

Dr. Albert Keidel

Former Senior Associate, China Program

Keidel served as acting director and deputy director for the Office of East Asian Nations at the U.S. Department of the Treasury. Before joining Treasury in 2001, he covered economic trends, system reforms, poverty, and country risk as a senior economist in the World Bank office in Beijing.

    Recent Work

  • Article
    As China's Exports Drop, Can Domestic Demand Drive Growth?

      Dr. Albert Keidel

  • Article
    China’s Fourth Quarter 2008 Statistical Record

      Dr. Albert Keidel

Dr. Albert Keidel
Former Senior Associate, China Program
Albert Keidel
EconomySecurityMilitaryForeign PolicyNorth AmericaUnited StatesEast AsiaChina

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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