Aaron L. Friedberg, an expert on the international relations of Asia and professor of politics and international affairs at Princeton University, joins James M. Lindsay to discuss the emerging U.S.-China strategic rivalry, the Trump administration's planned tariffs, and what the tariffs could mean for global trade partnerships.
Participants discussed how Donald J. Trump’s repudiation of multilateral cooperation undercuts the world’s ability to alleviate transnational challenges, even if other countries step up to fill the void left by the United States.
With ongoing euro uncertainty in Italy, financial turmoil in Argentina and Turkey, and potential fiscal risks to demand in Asia, does the Trump administration's focus on trade deals miss the larger macroeconomic picture?
The IMF’s reserve metric tends to overstate the reserve needs of current account surplus countries with little external debt, and understates the reserve needs of current account deficit countries with lots of external debt.
East Asia (China, Japan, and the NIEs) ran a $600 billion current account surplus in 2017. "Official" (central bank and sovereign fund) outflows accounted for about half of that. Asia's foreign exchange market intervention isn't as overt as it once was, but also hasn't entirely gone away.