Economists generally think that the Chinese currency is close to the levels that would be set by purely market forces. The persistent trade deficit is indeed problematic, but that’s because of the factors that drive it and the imbalances they cause to build. Simply targeting a lower trade deficit could well leave both American and Chinese workers worse off, if carried out the wrong way. Advertisement Continue reading the main storyBut the trade gap isn’t driven just by the details of trade arrangements. Advertisement Continue reading the main storyThen there are noneconomic issues, which invariably could shape the contours of economic relationships.

Source: New York Times April 06, 2017 07:30 UTC