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We need to stop blaming the trade war for everything

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The tussle between the US and China is being blamed for all manner of economic and financial developments. Some of these are only vaguely related to the tariff spat, or they reflect trends underway before US President Donald Trump ever heard of his Chinese counterpart Xi Jinping. In other areas, like monetary policy, the conflict alters timing, not outcomes.

The trade spat between the US and China is an easy target to blame when market pessimism is rising.Credit:AP

The latest demon is the prospect of a recession, which was said to be responsible for sliding stocks and diving bond yields Wednesday. The culprit? You guessed it: the trade war. But handicapping a recession has been a favourite game of market commentary every few months for the past two years. America's expansion is almost 10 years old; it's long in the tooth, tariffs or not.

China's economy was........

© Brisbane Times