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The real cause of today’s currency tensions lies not in the international monetary system, but in misguided domestic policies in the world’s major economies, which must undertake long overdue and largely internal reforms.
One way to prevent a long and painful decline in the region's economy would be for Germany to leave the eurozone, allowing indebted nations to devalue their currencies.
Asian states are adopting new strategies to preserve their national interests, prompted by the rising power of India and China. These strategies have implications for U.S. interests and leadership in the Asia-Pacific.
Europe must develop a strategic sense of itself, its influence, and its dependence on the global economy if it is to achieve stability and cohesion at home and play an active role abroad.
Until policymakers in Beijing enact major budgetary reforms to address the sources of China's low consumption-to-GDP ratio, economic imbalances and trade tensions with the West will persist.
As emerging markets transform mineral markets through strategic investments and export restrictions, advanced countries should work to secure access to crucial supplies, but be careful not resort to measures that impair free trade.
An alternative reserve currency would mean faster growth and less debt for the United States and would help correct ongoing imbalances in the world economy.
Though the global recovery is weakening, the world economy is not likely to head back into recession unless the sovereign debt crisis in Italy and Spain intensifies.
The current cycle of globalization could end in a painful period of debt adjustment and payment imbalances across the globe, with a likely slowdown of growth in China, a possible abandonment of the euro, and the risk of increasing U.S. protectionism.
The United States must generate more high-value jobs to capitalize on the opportunities presented by a rising China, which is likely to continue to make sustaining double-digit growth a key priority.
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