Great discussion of the RMB.
Revaluation of the RMB is not negative for China but will be a reallocation of wealth from government and manufacturers to households. Not clear it will help the US trade deficit as manufacturing will shift to other low cost producers.
Scott Sumner:
Five countries in Asia Singapore, Taiwan Korea Hong Kong and Japan combined have a ca surplus as big as China. They are richer. why are we not bashing them?
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