Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Summers was given the royal treatment in China
Summers was not shunted to lower-level aids who were unable to make decisions, but met with Chinese President Hu Jintao and with Bernanke's counterpart Zhou Xiaochuan, the head of the People's Bank of China. The Chinese went out of their way to achieve an atmosphere of friendliness. Here's a selection from the Reauters' report of the meeting:
We won't know for some time whether Summers got enough economic concessions from China to save the American economic recovery, or whether he was bought off by friendly words and treatment. My guess is that he was bought off and that the U.S. China trade deficit will continue to widen, though I do expect the yuan to strengthen by some miniscule amount, perhaps 1%.
Journal of Economic Literature:
Atlantic Economic Journal: