In February 2011, China entered the “year of the rabbit” with the new status of second-biggest economy in the world. This symbolises the prominent role in production and trade China and other low-wage countries have acquired during the last two decades. The economic consequence of this new deal is one of the most discussed phenomena in developed countries.
Low-wage countries competition, intra-firm reallocation, and the quality content of French exports
Julien Martin, Isabelle Méjean, 11 March 2011
Stop obsessing about global imbalances
Uri Dadush, Vera Eidelman, 6 March 2011
The idea of “rebalancing” global demand – increasing demand in trade-surplus countries so as to lessen the world’s dependence on demand growth in the US and other trade-deficit countries – is once again in the spotlight.
Half a century of large currency appreciations: Did they reduce imbalances and output?
Helmut Reisen, Moritz Schularick, , Edouard Turkisch, 2 March 2011
Over the past decade, several emerging market economies – China in particular – have run substantial and persistent current-account surpluses.
The international monetary system: If it ain’t broke, don’t fix it
Uri Dadush, Vera Eidelman, 26 February 2011
Reform of the international monetary system tops France’s agenda as G20 chair.
What the renminbi means for American inflation
Raphael Auer, 21 February 2011
China’s recent inflation is turning heads (Raede and Volz 2011, Cavallo and Díaz 2011). At first thought, the recent rise of inflation in China seems to be reassuring news for US policymakers concerned with the trade deficit.
Chinese inflation, monetary policy and the dollar peg
J James Reade, Ulrich Volz, 18 February 2011
China is grappling with rising inflation. Annual consumer price inflation reached a 28-month high of 5.1% in November (Financial Times 2010a). And even though inflation figures for December were a bit lower, at 4.6% (Financial Times 2011a), they still contained rising prices, especially of staple foodstuffs.
China’s dilemma: Higher inflation or deflation of exportables
Domingo Cavallo, Fernando Díaz, 17 February 2011
The course of inflation in China in the second half of 2010 and the beginning of 2011 is leaving Chinese authorities with a difficult choice. Either they allow a more rapid pace of appreciation of the renminbi or they accept an inflation rate much higher than that in mature economies.
The fog of currency war
Avinash Persaud, 16 February 2011
One way to expose the economic mumbo-jumbo that is applied to the Chinese exchange rate by otherwise respectable economists is to look at it from the perspective of Germany and international trade.
Who’s afraid of the big bad dragon? How Chinese trade boosts European innovation
Nicholas Bloom, Mirko Draca, John Van Reenen, 3 February 2011
Twin spectres are haunting Europe and the US – the growing economic power of China and fears about where the West’s own growth will come from after the crisis. This has been driven by the tremendous growth of imports from China, as shown in Figure 1 (see also Keller et. al 2010).
Before the Great Divergence: The modernity of China at the onset of the industrial revolution
Jan Luiten van Zanden, 26 January 2011
One of the big debates in economics is about the causes of the arguably most dramatic change in development trajectory in (recent) world history, the industrial revolution.
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CEPR Policy Research
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