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‘Carry-on Henry Paulson’ in China
FT Alphaville —
... 1M, 3M and 1Y NDFs are currently indicated at 6.9725, 7.1150 and 7.3350 mid. That’s all very well, but comments by central bank Governor Zhou Xiaochuan Thursday suggest China is prepared to do whatever it takes to avoid the “worst case scenario”. Above all, that could mean doing anything possible to beef up exports irrespective of what the US or Europe says. In that case Henry Paulson’s job in China may well be a challenging one. Perhaps to convince them Paulson should put forward Brad Setser ’s point. The CFR blogger says the renminbi’s position against the currency basket ...
deflation in china
Decline and Fall of Western Civilization —
... now accelerating and multiplying china's woes, the chinese government has begun to devalue the renminbi. this of course is exactly the opposite of the needed adjustment. governments ...
Incipient Chinese Yuan Depreciation in Context
Econbrowser —
... Now, there is a separate issue of whether China should try to make the RMB depreciate against the dollar -- that is there is a difference between understanding why the Chinese authorities are pursuing this policy, and supporting it. Brad Setser argues that -- given China's large and growing trade surplus and forex reserves -- it shouldn't allow RMB depreciation against the dollar. I tend to agree. But I doubt that RMB depreciation against the USD is the biggest issue facing the world economy. ...
