Newswise — “Congress and Treasury Secretary Geithner are to be congratulated for indicating today that they aim to get serious about Chinese-U.S. currency arrangements. A more sustainable exchange rate, and agreement not to manipulate that rate opportunistically in the future, will be essential not only to restoring trade balance between the two nations, it will also be essential, for that very reason, to avert future financial crises.
“Our latest crisis is attributable in significant measure to trade imbalance itself. Massive Chinese and OPEC country trade surpluses have rendered it next to impossible for the Fed to conduct monetary policy with a view to preventing financial bubbles and, therefore, busts.”
--Robert C. Hockett, Cornell University professor of Law
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