A spectre is haunting the World—the spectre of a currency war…This spectre is sustained by the prolonged swinging trade imbalances of the United States and China. Will the G20 degenerate into a G2 with China defending its exchange rate against the protests of the rest? Can’t the G20 show some statesmanship instead by putting global economic recovery on a new, environmentally sustainable path? If China can work out such an outcome with the other members of the G20, this will be China’s and the G20’s greatest contribution to global economic recovery—nay, global economic renaissance.
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