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Eurodollar Lessons for Hong Kong Renminbi (OMFIF, 4 min read) The Eurodollar market in London in the 1960s played an essential role in the internalisation of the USD. And, China’s control over Hong Kong (an international financial hub) reveals interesting parallels, reflects senior economist Herbert Poenisch. As China increasingly gains control of Hong Kong, the onshore market will open more, and HK’s comparative advantage in the offshore renminbi market will diminish. Now, this can open opportunities for offshores centres like London and can internationalise the renminbi, but China will never want to give away direct control of its currency.
China as Economic Bogeyman(Project, Syndicate, 7 min read) ‘If Chinese policymakers effectively targeted activities where social benefits exceed private benefits, then it is not clear why foreigners should complain.’ For example, China subsidising production of solar panels and wind turbines has caused a decline in the cost of renewable energy, a global public good.