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Don’t Worry about the Yuan: A crude attempt to “realign” China’s currency would do more harm than good
Publication Date: January 2008
Publisher(s): Hoover Institution on War, Revolution, and Peace
Funder(s): Hoover Institution on War, Revolution, and Peace
Funder(s): Hoover Institution on War, Revolution, and Peace
Topic: Banking and finance (Currency)
Economics (Economic relations)
Keywords: China; Yuan; Exchange Rates
Type: Brief
Coverage: China
Abstract:
The Currency Exchange Rate Oversight Reform Act of 2007, a bill supported by Democratic chairs and ranking Republican members of the relevant committees in the Senate and House that would punish China for its “misaligned” currency, the yuan, is based on the mistaken premise is that this misalignment threatens our prosperity by causing America’s large current-account deficits with China.