----- Original Message ----- From: "Jonathan Lassen" <[EMAIL PROTECTED]>
> Ian, > > They don't believe so: "China has the right to decide its exchange rate > policy and no international agreement forbids that." from: > http://english.peopledaily.com.cn/200307/01/eng20030701_119224.shtml > > But they've agreed in principle to gradually phase out capital controls in > the future (as part of the concessions they made for WTO accession), and > have signalled they are going to let the rmb float within a wider band. I'm > sure one thing the Chinese gov. is worried about is deflation. Lowered > demand for China's exports and cheaper imports would make that worse, no? I > think I might have to take a look at Brenner (Global Turbulence) again. > > I just can't figure out why there's suddenly a unanimous call for > revaluation. Especially since foreign firms account for such a significant > portion of exports from China (more than half I think). > > Curious, > > Jonathan ========================= Perhaps some clues here: http://www.bof.fi/bofit/seminar/bon1701.pdf
