Dr. Yan Liang joins Steve to talk about China’s role in the global economy and the concept of “de-dollarization.” It’s refreshing to hear a discussion of these issues without hyperbole, but you know that already; that’s why you come to Macro N Cheese.

Countries of the global south have suffered chronic debt and financial crises due to the neoliberal regime of the US and its allies. After the 2008 financial crisis, China has been diversifying its foreign exchange reserves and establishing currency swaps with more trading partners. The goal is to dilute the power of the dollar and temper US hegemony with a more stable and development-friendly system.

Yan and Steve consider the loss of jobs in the US – a consequence of perpetual trade deficits. She maintains that the competition is not between domestic and foreign production, but between high financial returns and real productive capacity.

The episode looks at China’s future role in global trade and finance, and how it might provide support and relief to developing nations. The conversation also touches on the flaws of the Western-led multilateral lending system and the need for alternatives.

Dr. Yan Liang of Willamette University specializes in Post Keynesian-Institutionalist approach to international trade and finance, financial macroeconomics, and economic development with a regional focus on China.

@YanLian31677392