To stay the spread of disquiet and keep climate action on track, governments must minimise the economic disruption and shepherd a just transition.
The US leads a group of major economies now determined to break China’s grip on resources vital to a green transition. While efforts to diversify the supply chain are understandable, without cooperation, the battle for control may lead to unfair and unsustainable practices.
Beyond concerns about sharp exchange-rate gyrations, there is growing recognition that the shock-absorbing powers of exchange rates are highly limited when the dollar is the invoicing currency.
Asian bond markets have grown massively since the 1997 currency crisis but remain dominated by government bonds and, while attracting huge foreign investor interest, also create capital flight vulnerabilities