As the trade war between the US and China escalates, with the US continuing to raise new tariffs on Chinese goods and China hitting back in kind, there seems to be no end in sight to the economic battle. The World Economy in Digital Times provides an in-depth discussion on this import tit-for-tat battle and sheds light on the various underlying issues whose scope is beyond the normal trade negotiations. On the surface, the economic dispute seems to have been brought about by globalization and protectionism. However, Raymond Yeung argues that the deeper reason behind this is the currency misalignment and the current global trade arrangement. Highlights of the book include: The need for global policymakers to sit down and construct a new monetary arrangement in response to the global imbalance. China’s “de-dollarisation” or diversification of its offshore portfolios to include alternative investments If China initiates a convertible standard superior to the fiat money regime, not only will it gain a market following, but it will also boost the global acceptance of the RMB. Facebook’s plan to create a blockchain-based digital currency, Libra, could potentially be both a yuan competitor and a yuan enhancer. Blockchain offers a fungible asset class option for China’s reserves investment and which can be relatively independent of political considerations. China being a front runner of the digital economy

The World Economy in Digital Times: Cryptocurrency and Its Role in the Us-China Trade War PDF

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