The Chinese are being pestered to de-peg their Yan from the dollar. They have so far refused. We saw it increase value from 2005-2008 when it was de-pegged.
Clearly they're protecting their exports. Question is, if they continue to see solid growth into 2010, will they ease up on the control and essentially favor a tighter monetary policy? And won't that be a nearly instant cause for price inflation in the US?
Some will say it will pave way for US industry to compete, but that won't happen overnight.
Thoughts?
Clearly they're protecting their exports. Question is, if they continue to see solid growth into 2010, will they ease up on the control and essentially favor a tighter monetary policy? And won't that be a nearly instant cause for price inflation in the US?
Some will say it will pave way for US industry to compete, but that won't happen overnight.
Thoughts?