Thursday, May 07, 2009
In late March, I outlined the emerging contours of conflict between the US and China in relation to the global recession and its ultimate outcome. Consistent with my expressed intention to recommend posts of importance on the subject of the recession and the transformation of the global economy, please consider this one by Edward Harrison at Credit Writedowns. He explains how East Asia is seeking to decouple itself from US financial policies through the creation of an Asian Development Bank, after having been dissuaded from doing so by the US in the late 1990s. East Asia, asserts Harrison, has learned its lesson, and will no longer permit the US to dictate policies related to trade, finance and development through the International Monetary Fund to the advantage of the US any longer. Essential reading.