Congress, China, and Currency Manipulation

One of the few things the U.S. Congress agrees upon is the problem of “currency manipulation,” especially on the part of China. The concepts of manipulation, or unfair undervaluation, are exceedingly hard to pin down from an economic viewpoint. It is true that China runs a bilateral surplus with the U.S., but as Jeffrey Frankel shows, this has little meaning for the exchange rate and competitiveness of their exports.



Jeffrey Frankel Professor, Harvard University’s Kennedy School of Government via CHINA US Focus http://ift.tt/1aJg03n