High investment rates have driven China's rapid growth in both GDP and consumption, but it is unclear whether such a strategy is sustainable in the long run.
Understanding that the renminbi became undervalued because of expansionary monetary policy in the United States in 2003 helps explain why Chinese economists and political leaders have a differerent interpretation of the currency issue than Americans.
Economic growth in Africa over the last ten years has been at its strongest in decades, but continued reform efforts—especially those affecting governance and the business climate—are needed to ensure that this renaissance continues.
Pending U.S. Congressional legislation that targets China’s currency policies is evidence of a broader trend toward protectionism, as countries seek to bolster domestic employment while avoiding the consequences of trade retaliation.
Rather than talking about building mutual trust, China should take concrete steps in order to inaugurate a positive cycle of reciprocal cooperation in U.S.-China relations.
If countries with large trade surpluses weaken their currency, countries with large trade deficits are likely to retaliate through reciprocal currency manipulation or trade tariffs.
President Obama will need to choose a strong chief economic adviser to replace Larry Summers, but he can also use the selection process as an opportunity for a substantial mid-course correction in his economic policy.
Deficit countries are neglecting the needed—and more difficult—reforms at home and fueling protectionist sentiment abroad with their focus on external trade imbalances and their calls for major surplus economies to increase demand.
With inflation rising, trade balances falling, and economic growth slowing, the outlook for Russia's economy is bleak. Official plans for strict budget tightening will only add to the troubles.
U.S. unemployment is expected to decline slowly in the coming years. Though a gradual adjustment is not unique to the current recession, policy makers must promote growth and address structural mismatches to help the 14.9 million unemployed workers.























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