Presentation on theme: "1 Chinas Economy and the NPC Albert Keidel Senior Fellow, The Atlantic Council of the United States March 17, 2010 International Economics."— Presentation transcript:
1 Chinas Economy and the NPC Albert Keidel Senior Fellow, The Atlantic Council of the United States AKeidel@Keidel.us March 17, 2010 International Economics Program The Carnegie Endowment for International Peace Washington, DC
15 Is the RMB too low? … or too high?! After the euro fell in July, 2008 China decided not to let the RMB depreciate against the US$
16 Foreign Surplus = Foreign Savings In economics -- this identity is always true … … but, which causes which? It is fashionable to say that the savings causes the surplus … but in Chinas case, this is doubtful.
17 Exports – Imports = GDP – Domestic Demand Foreign Surplus = Foreign Savings Does GDP growth push up exports? … … or, does demand for exports pull up GDP? Lets focus on exports and GDP growth …
18 Current Account Imbalances for the U.S., China and Rest of the World
19 U.S. Consumer Credit and Current Account Balance