.... Mr Summers was careful to say that the US remains committed to open trade and can gain from globalisation. But he also pointed out that Paul Samuelson, a famous economist (and uncle of Mr Summers), had argued that the case for free trade might not apply when countries were trading with nations that were pursuing mercantilist policies. The reference to China did not need to be spelled out.....
Also, Paul Krugman's Analysis of China Currency Policy......With the Americans and the Europeans experiencing a crisis of confidence, Davos man was keen to learn from China this year. American businessmen could be heard ruefully contrasting their own "dysfunctional" political system and flaky politicians with China's decisive and meritocratic leadership. China was also widely held up as an example of the virtues of "state capitalism" - in which government plays a bigger role in guiding the economy than has been fashionable in recent years. Given that China's economic take-off started when the state allowed a greater role for private enterprise, it seems odd to attribute the country's success to "state capitalism". But there is little doubt that bigger government was one of the big ideas at this year's World Economic Forum.....
