Online:
Visits:
Stories:
Profile image
By Economist's View (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

‘If China Stops Manipulation, Its Currency Will Depreciate’

Monday, February 23, 2015 15:17
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Jeff Frankel:

If China Stops Manipulation, Its Currency Will Depreciate: A rare issue on which the two parties in the US Congress agree is the problem of “currency manipulation,” especially on the part of China. Perhaps spurred by the 2014 appreciation of the dollar and the first signs of a resulting loss of American net exports, Congress is once again considering legislation to attack currencies that are seen as unfairly undervalued. The proposed measures include the threat of countervailing duties against imports from offending countries, although that would be inconsistent with international trading rules.

Even if one accepts the possibility of identifying a currency that is manipulated, however, China no longer qualifies. Under recent conditions, if China allowed its currency to float freely, without intervention, the renminbi would more likely depreciate against the dollar than appreciate. US producers would then find it harder to compete on international markets, not easier. …

Dean Baker tweets:

this assumes that only flows affect currency values and not stocks. The fact China holds close to $4tr in reserves likely matters



Source: http://economistsview.typepad.com/economistsview/2015/02/if-china-stops-manipulation-its-currency-will-depreciate.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.