Currency Disputes

UNCTAD is not a fan of a floating exchange rate for China: Amidst continued financial crisis, the question of the global trade imbalances is back high on the international agenda. A procession of prominent economists, editorialists and politicians have taken it upon themselves to “remind” the surplus countries, and in

Both the Financial Times and New York Times (hence the post title) have recent articles which refer to the Chinese currency issue.  From the FT: True, Washington and Beijing are trading heated accusations over whether China’s continued policy of holding down the renminbi is responsible for global imbalances. But

According to Arvind Subramanian, the biggest harm from the undervalued yuan is to developing countries: .. an undervalued exchange rate is above all a protectionist trade policy, because it is the combination of an import tariff and an export subsidy. It follows therefore that the real victims of this policy are

From China Daily: Spain will propose that the European Union (EU) consider lifting an arms embargo on China and grant full market economy status to the country, Madrid's top envoy to Beijing has said. Elaborating on Spain's tasks during the six months it holds the EU

Don Boudreaux is the anti-Krugman on Chinese currency issues.  In this piece, he first explains that "a lower-priced yuan causes Americans to buy fewer U.S. products and more Chinese products."  Then, assuming arguendo -- more on arguendo assumptions soon in relation to the China - Publications AB

Edwin Truman of the Peterson Institute asks, "Is universal floating the solution to persistent imbalances?"  His answer: Universal floating is not the answer to persistent imbalances. If the exchange rates of all countries floated, or if foreign exchange market intervention were only occasional, that would help to address

Paul Krugman has another piece on China's currency policies.  One thing he does in this latest piece is reject " two reasons [that have been offered] for not confronting China over its policies. "  One of these he describes as follows: Second, there’s the claim that protectionism

Economist Robert Aliber, writing in the FT: The US can help China make the necessary adjustments toward a reduction in imbalances by adopting a uniform tariff of 10 per cent on all Chinese imports, based on their values when they enter the US. Six months after the establishment of this

Dan Drezner half-jokingly proposes the following: It would be interesting for the U.S. Trade Representative and the EU Trade Directorate to make the following proposal:   Hey, Wen, you're right about the unfair tire tariffs and the like.  Let's make a trade deal:  you allow

GATT Article XV:4 states in part: [WTO Members] shall not, by exchange action, frustrate* the intent of the provisions of this Agreement ... Thus, Article XV:4 refers to the "intent of the provisions of this Agreement."  One provision of "this Agrement" (that is, the GATT)