Asia and global governance

October 15, 2011 by

The expansion of the G7 to the G20, thereby incorporating Asia, is a welcome step. Economic power relations have changed considerably in the past decade or so and it was thus only natural that the global governance architecture should begin to reflect this new reality. The efforts of the G20 in tackling the 2008–2009 global crisis reinforced the efficacy of this initiative.

China’s monetary and exchange rate policy and the global economy

October 15, 2011 by

China has had an inappropriate monetary and exchange rate policy for far too long. By keeping its currency value closely in line with the US dollar, China maintains a grossly under-valued exchange rate. The result is China’s immense current account surpluses and associated massive accumulation of foreign exchange reserves.