Publication Date: January 2008
Publisher: Hoover Institution on War, Revolution, and Peace
Research Area: Banking and finance; Economics
Keywords: China; Yuan; Exchange Rates
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.