Geng Xiao is director of the Brookings-Tsinghua Center for Public Policy and senior fellow at the Brookings Institution.
The debate over the exchange rate between the renminbi (RMB) and the dollar is usually framed in terms of global imbalances: excessive US consumption beyond its savings on the one hand and excessive Chinese production and savings beyond its own spending on the other. This quickly leads to the view that the United States should export and save more and China import and spend more.
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