Wednesday, May 04, 2011

More Chinese Realize That Currency Policy Fuels Inflation

I have long maintained that China should let the yuan increase in value against the U.S. dollar-not primarily for America's or any other foreign country's sake. but for its own sake as the current policy of a semi-peg to a weak currency fuels high inflation.

According to this article,.this realization is spreading in China. So far however, it has not spread enough to bring on a sufficiently great policy change.