Asian Currencies: New global scapegoats C.P. Chandrasekhar and Jayati Ghosh

America’s twin deficits, many economists fear, would lead to a collapse of the dollar and global recession. In their desperation to find a solution, they have turned their attention to Asia, with the demand that governments, especially the Chinese government, should revalue exchange rates, so that adjustment in the US would be smooth and growth would be triggered in Europe and Japan. This article assesses this effort to find new whipping boys to conceal American sins.

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