About Time

China has decided to reform their currency controls, fight excessive liquidity, moderate their balance of payments imbalances, and temper their blistering growth - currently at nearly 12% - to prevent a debt crisis or excessive inflation.

There are several good things about this. First, it will help create a policy framework for China to continue growing at sustainable rates. Second, it will help Western countries - like the U.S. - narrow their current account deficits, which might help bring a successful conclusion to Doha. Third, it lowers the potential for China's bubble to burst, or for inflation to run roughshod over the economy, killing that country's poor. Fourth, it removes one of the last American excuses for liberalizing trade further, as China can now band together with the G-20 to force America to practice what it preaches. I think I like everything about this.