Why the Chinese Would Welcome a Fed Rate Hike

The transcript discusses the macroeconomic adjustments since the 2013 taper tantrum, highlighting the progress in economic healing and the role of currency in fostering adjustments. It explores the potential benefits and risks of a Fed rate hike for China and the global economy, emphasizing the importance of a stronger US economy. The discussion also covers the implications of US interest rate changes on global financial stability and the impact of a strong dollar on the global economy, including the risk of exporting deflation to the US.

In what way could a stronger dollar export deflation into the US economy?

What is the significance of the interaction between the US economy and the rest of the world in the Fed's policy framework?