Chinese marketAnatole Kaletsky

Asian nations are interested in American politics because Asian leaders believe that the era of American hegemony is ending and polarized politics symbolizes its inability to adapt to global capitalism after the financial crisis. Kaletsky says Chinese economic policy is now serving as a model for other Asian countries. Japan recently chose to follow China in its currency valuation at the cost of irritating America. Instead of obsessing over China’s currency manipulation, America must understand that the rules of global capitalism have been changed for good since Lehman Brothers collapsed. The market is not always right. Sometimes it can be trusted and sometimes government intervention in needed. Kaletsky looks at other world market models and says if we continue to opt for nostalgia and ideology when it comes to economics, “the new model of capitalism will probably be made in China, like so much else in the world these days.”

Kaletsky, the chief economist of a Hong Kong-based investment advisory firm, is the author of “Capitalism 4.0: The Birth of a New Economy in the Aftermath of Crisis.”

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