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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (405792)	1/21/2011 4:39:51 PM
From: Katelew	1 Recommendation Respond to of 794009

China has allowed the yuan to appreciate steadily in an effort to fight inflation, just not enough to satisfy American business interests. China's trying to thread a needle re its currency....keep prices of its exports low while also battling inflation. The relationship between a country's currency and it's rate of inflation is not as cut and dry as a textbook would have one believe. There are too many other variables. All of the time honored economic relationships are also changing because of the global economy. It's not clear to me that a sharp rise in the yuan would dampen China's inflation rate that much anyway. Much of their inflation is being forced on them in the form of higher commodity prices they have to pay for things their country doesn't produce enough of. My main point though is that I find most of the China bashing re currency to be fruitlessly antagonistic. China's going to act in its own perceived self interest.