‘Chimerica’ and the Rule of Central Bankers
In The Wall Street Journal, Niall Ferguson writes that the past week has shown that the world economy is dominated more than ever by the symbiotic relationship of China and America.
None of what we recommended was done. China's persistent reliance on currency weakness made an American backlash inevitable. It came in the form of the protectionist Donald Trump's election in 2016:
By 2015 it seemed obvious to us that only a more transparent (and independent) Chinese monetary policy would avert a new crisis as the Fed tried to taper QE, while China gambled on yet another devaluation: