China and America

the long version

"In the US the current credit crunch is likely to be followed by an economic downswing, led by housing, but with weakened household wealth and confidence prolonging the pain. US policy-makers seem impotent against the backwash from past debt excesses - and much of what the Federal Reserve does simply worsens the problem." "Meanwhile China's explosive exports are feeding through to overheat the domestic economy. Inflation is accelerating fast. Yet Beijing can only fight it by unpopular repression of domestic demand or finally letting China's yuan soar." "A severe cutback in China's growth seems likely. If the Chinese authorities allow major yuan appreciation and progressively freer overseas investment, both the Chinese and world economies could rebalance quite easily. But if Beijing maintains a stubborn defence of the cheap yuan and control over its citizens' savings, the global outlook is set to be very much darker." "As the two most dominant nations in the global economy separately face the economic challenges imposed by their symbiotic relationship, this forthright examination of the risks it poses - and of the policy tensions arising from possible solutions - makes China and America essential reading for anyone concerned about our future economic prosperity."--Jacket.