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Fixed Exchange Rates and China’s Growth

The gold bugs over at the National Review have been arguing against letting the yuan float. Mark Thoma provides one review of Lawrence Kudlow as Mark points to Milton Friedman…

Defending China’s Pegged Exchange Rate

…do not see the same alleged deflation for the late 1980’s or late 1990’s. Beyond that, I’m not sure what a comparison of the level of the yuan/$ nominal exchange…

The Downside of Devaluation

In a piece in the next issue of The Economist, Brad Setser nicely explains the risks of a potential yuan revaluation against the dollar: According to Brad Setser, a former…

Intelligent trade policy

…23) claimed that revaluation of the Chinese yuan would “make barely a dent in America’s trade deficit.” This ludicrous assertion flies in the face of basic economic theory and our…

Protection from who? is the question

…it is keeping the yuan undervalued to gain an advantage in the international marketplace. A cheaper yuan makes Chinese goods less expensive in the United States and American goods more…