Eswar Prasad - Mentions and Appearances

The global financial crisis has strengthened the dollar's prominence in global finance.

The emerging markets [are] largely viewing monetary policy in advanced economies as causing problems for them and the advanced economies are basically taking the position that the emerging markets are chronic complainers.

The currency issue will come up [at the U.S.-China Strategic and Economic Dialogue], but not, I think, with a great deal of stridency on the U.S. side.

The traditional flashpoints between the two countries, the currency issue and trade have diminished as flashpoints. The real opportunity here lies in the fact that China and the U.S. now have a commonality of interests.

The reality is that there is going to be a wave of money coming from China. It is becoming a richer country. Its households, its firms, its banks are all looking for investment opportunities abroad, and the U.S. still remains a very good place to invest.

Every bit of technical help, every bit of support that the U.S. can provide to the Chinese while they fight their internal domestic political battles, is going to be very important.

China has subtly but very, very slightly shifted to the defensive on some of these economic issues. They want to make sure they don’t get left out, and I think the U.S. has, again very subtly, tried to maneuver a little bit around China by building stronger relationships with other countries in the Asian region.

This is an opportune time for the U.S. to endorse and support China's reform agenda, which is clearly in the long-term interest of both countries. What China would like to send back home would be images of Xi and Obama rolling up their shirt sleeves and getting down to business as equals.

The main risk for the IMF is that it comes to be seen as less relevant to the region [Southeast Asia], both in terms of the advice it has to offer and in its role as provider of a financial safety net.

The slowdown in China is going to have implications for the rest of the world. But the big global risk of course is Europe. It’s going to affect China. It’s going to affect everybody else.