the combination of economic policies adopted by the two key economies, the US and China. Global financial markets served … economic policies followed by emerging markets such as China and the oil-exporting countries contributed to the US ability to … continue to focus only on price stability. -- Asset prices ; China ; current account adjustment ; global liquidity ; oil prices …

interesting implications for how one views the huge US current account deficit and how the emergence of China's savings surplus … also at a lower growth rate than without the China effect. Moreover, we argue that the lower real interest rates resulting … from excess OPEC savings have facilitated the adjustment to the subprime crisis. -- China factor ; current account …