For creditor countries on the periphery of the dollar standard such as China with current account surpluses, foreign … the (incipient) deflation that China now faces. It could create a zero-interest liquidity trap in financial markets that …

In recent years China has experienced two forms of extreme macroeconomic imbalance: an expenditure imbalance in the … policies. On current policies, the surplus is likely to rise again once the world economy recovers from its recession. This …; risk of capital loss on the foreign exchange holdings; and the threat of retaliation by China's trading partners. A …

?)—although the pressure on Japan to appreciate is not yet as great as it now is on the People’s Republic of China (PRC). But Japan is … effective in placating foreign mercantilists. Under foreign pressure to appreciate the renminbi, the PRC, with its booming …

Especially, after the 2000s, many developing countries let exchange rates float and began implementing inflation … implementing inflation targeting regimes experienced considerable appreciation trends in their currencies. Might have exchange … rates been utilized as implicit tools even under inflation targeting regimes in developing countries? To answer this …

permanent shifts of the exchange rate and the price level if a central bank anchors long-run inflation expectations. In line …-run price level target rather than a long-run inflation target avoids these permanent shifts of the exchange rate and the price …