Fumbling towards a truce | The Economist

Fumbling towards a truce | The Economist - Currency wars:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
30.10.10 22:46 Currency wars: Fumbling towards a truce | The Economist Страница 1 из 2 http://www.economist.com/node/17252006/print Currency wars Fumbling towards a truce The first of three pieces on currency tensions looks at a possible path to peace Oct 14th 2010 | WASHINGTON, DC THE organisers of this year’s annual meetings of the International Monetary Fund and World Bank, held in Washington, DC, on October 8th–10th, wanted to jazz up what can often be tedious gatherings. There were fewer turgid official speeches, more snazzy seminars and even an outdoor café for visiting nobs to chat in the unseasonably warm weather. Unfortunately, despite the sunshine and swish surroundings, the meetings were depressing, dominated by dark talk of global currency wars. Policymakers traded barbs about whose actions harmed the world economy most. Rich countries, especially America, focused on China’s unwillingness to allow the yuan to rise (see article ). Tim Geithner, the treasury secretary, set the tone with a tough admonition just before the gathering began. China’s unwillingness to allow the yuan to rise, he said, created a “dangerous dynamic” of “competitive non-appreciation” in emerging economies. Excess accumulation of reserves, he added later, was leading to “serious distortions” in the world economy. Nonsense, responded China’s officials. The biggest distortion, they argued, came from the rich world’s ultra-loose policies, particularly the expectation that America’s Federal Reserve would
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/17/2010 for the course MATH 123ds taught by Professor Lincoln during the Spring '10 term at MSU Bozeman.

Page1 / 2

Fumbling towards a truce | The Economist - Currency wars:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online