The Appreciating Renminbi

by Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, voxeu.org China is perennially accused of currency manipulation. Yet, this article argues that a weak currency value doesn’t necessarily reflect currency manipulation. China is a fast growing economy with strong financial frictions and a high saving rate, and such countries naturally have weak currencies. Instead of focusing …

RMB as a Reserve Currency and Chinese Financial Reform

Michael Pettis updates his readers about China’s financial condition. He reports while there were some good news coming in past two weeks from the country, some bad news made the economic data a mixed kind. Mr. Pettis addresses everything about RMB bloc and undergoing change of the economic power.

The U.S. China Economic and Security Review Commission 2011 Annual Report to Congress

by Dirk Ehnts The U.S.-China Economic and Security Review Commission released its 2011 Annual Report to Congress on November 16, 2011.Below I discuss some paragraphs where I think the authors are mistaken in their beliefs. China’s foreign currency reserves are skyrocketing. A major contributor to this phenomenon is China’s continued policy of maintaining closed capital …