Brenda Bailey-Hughes interviews Andreas Hauskrecht about United States-China trade disputes, rising protectionism, and China's exchange rate regime. Hauskrecht is a Clinical Associate Professor of Business Economics at the Kelley School of Business, Indiana University and Bailey-Hughes is Senior Lecturer also at the Kelley School of Business. Hauskrecht states that protectionism is a difficult issue for economists because it can protect specific industries but also results in loss of competitiveness, productivity growth, and a slower overall economic growth. The United States has urged China to change its exchange rate regime because the undervalued Chinese currency jeopardizes competitiveness. Chinese monetary authorities also hold an abundance of U.S. dollars which can indirectly influence interest rate levels in the U.S. Lastly, Hauskrecht talks about the current financial crisis and claims it is a worldwide imbalance. *This video was recorded as a part of the Indiana University CIBER Focus Vodcast series.
