In search of symmetry in the eurozone
De Grauwe, Paul. The analysis in this Commentary provides strong evidence that the burden of the adjustments to the imbalances in the eurozone between the surplus and the deficit countries is borne almost exclusively by the deficit countries in the periphery. And although the European Commission has now been invested with the important responsibility of […]
Why a More Flexible Renminbi Still Matters
Rogoff, Kenneth. One of the most notable macroeconomic developments in recent years has been the sharp drop in China’s current-account surplus. The International Monetary Fund is now forecasting a 2012 surplus of just 2.3% of GDP, down from a pre-crisis peak of 10.1% of GDP in 2007, owing largely to a decline in China’s trade […]