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Is the Chinese Yuan Too Cheap?

06:04, 1969-Dec-31 .. 0 comments .. Link

Is the Chinese Yuan Too Cheap? Is the Chinese Yuan Too Cheap? So here we are, once again, in a nasty round of political bickering over China's currency,Grow lights, Microfiber cloththe yuan (also known as the renminbi). There is a widespread belief around the world that Beijing has been setting the value of the yuan at an artificially cheap level, which gives Chinese exports an unfair advantage in international markets. #xJust a few days ago, President Obama called on China to move towards a more “market-oriented” exchange rate, for the good of the global economy. Chinese officials have never looked kindly upon criticism of its currency regime, and this weekend, none other than Premier Wen Jiabao himself made some of China's strongest protests yet. In a defiant press conference, Wen insisted that the yuan is not undervalued, then went on to blast:

What I don't understand is the practice of depreciating one's own currency and attempting to press other countries to appreciate their own currencies solely for the purpose of increasing one's own exports. This kind of practice I think is a kind of trade protectionism.Microfiber cloth

I have to give Wen special kudos for having the sheer chutzpah to make such a comment, #xsince it's exactly what the world accuses China of doing. That stones-and-glass-houses irony was lost on no one. Yet to be fair to Wen, determining the proper value of China's yuan is no easy task.

The conventional view is that China, with its giant trade surpluses, should have a much more expensive yuan, and the only reason it doesn't appreciate is because the Chinese government won't allow it to. However,#x economists have come up with wildly disparate estimates of where the yuan should be.Microfiber cloth I won't bore you with the details behind these conflicting opinions (because they're boring), but a quick trot through the basics will give you an idea of how complicated a currency the yuan has become. 相关的主题文章：