Imbalances: Rebalancing act

Cheap money from China helped create the bubble that has now burst spectacularly. Beijing’s policy of keeping its currency artificially low allowed it to rack up massive trade surpluses - cash which was recycled to help Americans live beyond their means. Given this, one might have thought the G20 leaders gathering in London would be focusing on preventing such imbalances in the future. In fact, it looks like they are going to shirk the issue. That’s largely because confronting it would cause a d...