Excellent NYT article by Greg Mankiw on the choices nations face on monetary policy. They basically have a choice of picking two out of three.
1. Make the economy open to flows of currency
2. Use monetary policy to manage the economy
3. Maintain stability in the currency exchange rate
USA chooses 1 & 2. EU - 1 & 3. China - 2 & 3. Whenever one of these guys criticizes another, they are expecting the other to change over to their own policy choices.
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