Since our August update, the eurozone crisis and poor global growth have fueled investor flight to dollars, despite the recent downgrading of the U.S. credit rating. As fund managers have moved money…

Steven A. Tananbaum Senior Fellow for International Economics Robert Kahn argues that China’s request to include its currency, the renminbi (RMB), in an International Monetary Fund (IMF) currency basket, known as special drawing right (SDR), is political as much as economic in intent and effect. The inclusion would signal a milestone in China’s transition to a less-regulated economy.