Tag Archives: monetary policy

Is the RMB Debate Over?

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OK, stupid question. The political debate is definitely not over. On the other hand, the focus of the discussion among economists sure has changed over the past year or so. Not too long ago, everyone was arguing whether the RMB was only 10% undervalued or as much as 40%. Now we’ve got this sort of…

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You Say Tomato, I Say Mercantilism

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Obama: weakening the dollar? I have no idea what you’re talking about. Unlike China, we’re just trying to grow our economy.

Geithner Strikes Out at G-20

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The U.S. has no credibility on deficit reduction these days. No surprise that Geithner’s plan was DOA.

Krugman’s Latest on the RMB

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Economist Paul Krugman comments on the RMB policy shift announced last weekend. As usual, he gets his facts right but ignores the reality of PRC domestic politics.

RMB Follies: Patience is a Virtue

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It’s been a strange couple of days in the ongoing RMB valuation saga. Some comments on Beijing’s ‘head fake’ and the strategy behind it.

U.S. Passes Up Second Chance on RMB

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The US launched a probe into Chinese exports of aluminium products on Wednesday night but postponed a decision on whether to include the country’s exchange rate policy in its inquiry. The investigation, announced by the commerce department, will unfold over the next few months, with an initial determination scheduled for May 17. It threatens to…

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US-China Debate Over RMB is a Prisoner’s Dilemma

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Never thought about it before in those terms, but it does make some sense. The Prisoner’s Dilemma is, of course, the classic scenario used in Game Theory, usually taught in economics or political economy classes, involving two people in police custody following the commission of a crime. The model is used in introductory level classes…

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