A Chinese Currency Adjustment
Yes, I'm back now. Not much seems to have happened while I was gone, except for an adjustment of the official Chinese currency policy.
It looks like it is essentially a re-run of the 2005 "de-pegging", which means a very slow and gradual appreciation, or in other words a Singapore-style managed float system with a controlled and slow appreciation.
This will not really change much economically, at least not if the adjustment was as slow as during the first two years of the 2005-08 adjustment. Hopefully it will however be enough to stave off a U.S.-Chinese trade war.
It looks like it is essentially a re-run of the 2005 "de-pegging", which means a very slow and gradual appreciation, or in other words a Singapore-style managed float system with a controlled and slow appreciation.
This will not really change much economically, at least not if the adjustment was as slow as during the first two years of the 2005-08 adjustment. Hopefully it will however be enough to stave off a U.S.-Chinese trade war.
posted by stefankarlsson at 12:18 PM
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