Yuan appreciation and the trade "deficit"
Wednesday, March 17, 2010
Who knew that while the yuan appreciated against the U.S. dollar between 2005-2008 China’s trade surplus with the U.S. continued to widen? Why would American policy-makers want the Chinese yuan to appreciate further when evidence suggests that this will only trigger more Chinese imports?
Accusing the Chinese of currency “manipulation” would trigger a huge tariff on all Chinese imports. Politically easy, but economically illiterate.
