The present paper discusses ways of adjusting the imbalances of the global economy and its impact on China＇s economy. The analysis in the paper shows that the cut of US fiscal deficits and the appreciation of the cur...The present paper discusses ways of adjusting the imbalances of the global economy and its impact on China＇s economy. The analysis in the paper shows that the cut of US fiscal deficits and the appreciation of the currencies of East Asia, including China＇s RMB, are necessary for a smooth adjustment of the global imbalances. The adjustments will have a positive impact on China＇s economy and will help China realize its external balance. The increase in public spending on the service sector along with the appreciation of RMB will help China realize the internal balance too. The adjustment of the global imbalances will create opportunities and an external pushing force for China in its industrial restructuring and shift in the model of economic growth.展开更多
The existing explanations for President Trump’s decision to trigger a trade war with most of America’s trading partners are not sufficient.The less explored motivation,we argue,is to raise income for the federal gov...The existing explanations for President Trump’s decision to trigger a trade war with most of America’s trading partners are not sufficient.The less explored motivation,we argue,is to raise income for the federal government through tariffs in order to balance the surging fiscal deficit caused by Trump’s bold tax cut policy since December 2017.The repeated increase in interest rates by the Federal Reserve throughout 2018 is leading to sharp increase in the cost of servicing America’s US$21 trillion and growing debt,which means that debt servicing would soon become the biggest outlay of the US government.This new explanation implies that the US will need additional sources of income like tariffs in order to balance its budget,and tariffs on Chinese products is viewed as a main source of such income.China should,therefore,rethink its strategy in seeking a resolution for the trade war.展开更多
文摘The present paper discusses ways of adjusting the imbalances of the global economy and its impact on China＇s economy. The analysis in the paper shows that the cut of US fiscal deficits and the appreciation of the currencies of East Asia, including China＇s RMB, are necessary for a smooth adjustment of the global imbalances. The adjustments will have a positive impact on China＇s economy and will help China realize its external balance. The increase in public spending on the service sector along with the appreciation of RMB will help China realize the internal balance too. The adjustment of the global imbalances will create opportunities and an external pushing force for China in its industrial restructuring and shift in the model of economic growth.
基金This study was financially supported by the Ministry of Education of the People’s Republic of China.
文摘The existing explanations for President Trump’s decision to trigger a trade war with most of America’s trading partners are not sufficient.The less explored motivation,we argue,is to raise income for the federal government through tariffs in order to balance the surging fiscal deficit caused by Trump’s bold tax cut policy since December 2017.The repeated increase in interest rates by the Federal Reserve throughout 2018 is leading to sharp increase in the cost of servicing America’s US$21 trillion and growing debt,which means that debt servicing would soon become the biggest outlay of the US government.This new explanation implies that the US will need additional sources of income like tariffs in order to balance its budget,and tariffs on Chinese products is viewed as a main source of such income.China should,therefore,rethink its strategy in seeking a resolution for the trade war.
