How important would an economic downturn in China be for the United States?
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Category Archives: China
Yuan Undervaluation?
As noted in The Hill, from a letter written by key House and Senate leaders to President Obama:
The continued misalignment of China’s currency is unsustainable and unacceptable.
Guest Contribution: “Misinterpreting Chinese Government Intervention in Financial Markets”
Today we are fortunate to have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99. A shorter version of this column appeared at Project Syndicate.
On China, and Preventing the Financial Runs of August
Reasoned analysis and careful decisionmaking is required.
Governor Walker on Responding to the Chinese Economic Situation
From USAToday:
“Americans are struggling to cope with the fall in today’s markets driven in part by China’s slowing economy and the fact that they actively manipulate their economy,” the Wisconsin governor said in a statement. “Rather than honoring Chinese President Xi Jinping with an official state visit next month, President Obama should focus on holding China accountable over its increasing attempts to undermine U.S. interests.”
China’s economic slowdown
U.S. stock prices as measured by the S&P500 fell almost 7% last week. What’s going on?
Value of S&P500 index over last 3 months. Source: Google Finance.
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Evaluating the Chinese Devaluation
The 2% devaluation of the Chinese yuan on Monday, and subsequent 1.6% weakening on Tuesday, was variously described as surprising and stunning. I think it was to be expected, given China’s slowing growth, although there was no particular reason to believe Monday would be the day. In evaluating the effects, one has to first place the drop in context.
Guest Contribution: “Were Chinese regulators responsible for the recent stock market bubble?”
Today we are fortunate to have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99.
A Brief Note on Yuan Exchange Rate Pass-through to US Imports from China
In today’s WSJ, Justin Lahart notes “China Wind Chills U.S. Earnings”, and presents an interesting graph of import prices, which inspired me to look more closely at the issue.
China: The Stock Market Meltdown Continues
The stock market continued to decline today, despite vigorous efforts by the authorities. That being said, perspective is required.