Yet again China has avoided any specific committments on floating it’s currency, which is highly likely to appreciated in value were it not pegged to a US dollar rate. bq. What was left unsaid was that the current economic imbalances are boosting economic performance of most large economies and there is little appetite for the measures that could reduce them, such as tighter fiscal or monetary policy to reduce demand in the US or an appreciation of Asian currencies against the US dollar. (“Financial Times”:http://www.ft.com/cms/s/37c2b1ba-1572–11d9-8997–00000e2511c8.html) It’s no crisis as I’ve “acknowledged before”:http://www.inquit.com/article/321/the-great-sucking-sound-revisited. They can go on taking in each other’s washing for a long time. But there’s an adjustment coming: sure as christmas.
Peter Gallagher is student of piano and photography. He was formerly a senior trade official of the Australian government. For some years after leaving government, he consulted to international organizations, governments and business groups on trade and public policy.
He teaches graduate classes at the University of Adelaide on trade research methods and the role of firms in trade and growth and tweets trade (and other) stuff from @pwgallagher