Friday, April 14, 2006

China’s currency: what’s news?

From the “What’s News” column of Saturday’s Wall Street Journal: “China’s decision to liberalize its foreign-currency regime is unlikely to result immediately in a strengthening of the yuan. (Article on Page A4)”

And this is news? Am I missing something, or should the story have been, “The effect of China’s relaxation of capital controls has been widely misunderstood by potential Wall Street Journal readers.”?

The article is quite clear about what China did: “China’s central bank announced measures that will make it easier for individuals and companies to buy foreign currency – and then for the first time to invest those funds overseas in stocks and bonds through banks and brokerage firms.” The substance had already been reported in Friday’s “What’s News” column (along with any number of other places in the financial press): “China will allow companies and individuals to make significant investments abroad for the first time…”

In other words, people who previously had to hold their assets in yuan-denominated form will now be allowed to sell those yuan. (I know that’s an oversimplification, but that’s the gist of it.) OK, here’s a quiz: what happens to the price of something when people sell more of it? Does the price go up? (It’s been a few years since I was in school. Maybe I’ve missed some of the latest thinking on this topic.)

Assuming economics has not been completely turned on its head in the last 12 years (and that the yuan is not a Giffen good), it seems to me that the relaxation of capital controls cannot result in a strengthening of the yuan. What it will do, of course, is reduce the required amount of intervention by the Chinese to support the dollar’s current exchange rate against the yuan. Think of it as partially privatizing the job of supporting the dollar.

What the Chinese apparently hope is that, eventually, investment abroad by Chinese individuals and businesses will become so popular that the job of supporting the dollar (or other foreign currencies) can be “fully privatized.” At that point, the intervention will no longer be necessary, the currency can be made fully convertible, and nobody can continue to accuse the Chinese of manipulation. Some economists think that might actually happen.

Well, a few economists think so, anyway. Most, however, think that the Chinese will have to allow the yuan to appreciate significantly before they can stop their intervention. It is unclear whether yesterday’s action will hasten or delay such a change.

Labels: , , ,

9 Comments:

Anonymous Anonymous said...

福~
「朵
語‧,最一件事,就。好,你西.............................................................................................................
..................

Wed Apr 01, 09:40:00 AM EDT  
Blogger . said...

酒店喝酒,禮服店,酒店小姐,酒店領檯,便服店,鋼琴酒吧,酒店兼職,酒店兼差,酒店打工,伴唱小姐,暑假打工,酒店上班,酒店兼職,ktv酒店,酒店,酒店公關,酒店兼差,酒店上班,酒店打工,禮服酒店,禮服店,酒店小姐,酒店兼差,暑假打工,酒店經紀,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,寒假打工,酒店小姐,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,暑假打工,酒店小姐,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,寒假打工,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,暑假打工,酒店小姐,台北酒店,禮服店 ,酒店小姐,酒店兼差,暑假打工,酒店小姐,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,寒假打工,酒店小姐,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,暑假打工,酒店小姐,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,寒假打工,酒店小姐,台北酒店,禮服店 ,酒店小姐,酒店經紀,酒店兼差,暑假打工,酒店小姐,禮服店 ,酒店小姐,酒店經紀,酒店兼差,寒假打工,酒店小姐,禮服店 ,酒店小姐,酒店經紀,酒店兼差,暑假打工,酒店小姐,禮服店 ,酒店小姐,酒店經紀,酒店兼差,寒假打工,酒店小姐,禮服店 ,酒店小姐,酒店經紀,酒店兼差,暑假打工,酒店小姐,酒店傳播,酒店經紀人,酒店,酒店,酒店,酒店 ,禮服店 , 酒店小姐,酒店經紀,酒店兼差,暑假打工,招待所,酒店小姐,酒店兼差,寒假打工,酒店上班,暑假打工,酒店公關,酒店兼職,禮服店 , 酒店小姐 ,酒店經紀 ,酒店兼差,暑假打工,酒店,酒店,酒店經紀,酒店領檯 ,禮服店 ,酒店小姐 ,酒店經紀 ,酒店兼差,暑假打工, 酒店上班,禮服店 ,酒店小姐 ,酒店經紀 ,酒店兼差,暑假打工, 酒店上班,禮服店 ,酒店小姐 ,酒店經紀 ,酒店兼差,暑假打工, 酒店上班,酒店經紀,酒店經紀,酒店經紀

Tue Apr 21, 07:29:00 PM EDT  
Blogger raul said...

Some new style Puma Speed is in fashion this year. chaussure puma is Puma Shoes in french. Many france like seach “chaussure sport” by the internet when they need buy the Puma shoes or buy the nike max shoes.The information age is really convenient. By the way ,the puma CAT is really good chaussures puma ,don’t forget buy the puma mens shoes and nike air max ltd by the internet when you need them . Do you know Nike Air Shoes is a best Air Shoes .

Spring is coming, and how to choose the polo shirts is the main concern of many people. ralph lauren polo shirts is a classic type and reliable. ed hardy clothing is more in line with the aesthetic ideas of young people, so many young people filled with a variety of ed hardy clothes in their wardrobes. New style ed hardy womens shirt match the new style ed hardy sunglasses , it is a good idea.
Do you think this season is not for ugg boots ? maybe yes .but this season is best time that can buy the cheap ugg boots. Many sellers are selling discounted. Do not miss . Please view my blog and fc2 blog .thank you .

Wed May 20, 05:01:00 AM EDT  
Blogger wow power leveling said...

Faint hint of the love of friendship

Faint hint of the love of friendship. There is a friend, I think that is a cheap wow gold kind of love and friendship between the feelings between, you will occasionally miss a time to silence him, reminds him, the warm heart, a beautiful, a moving. Sad and worried at the time, you will think of him, you hope that he can in your side, give you comfort and buy wow power leveling understanding to you, and you never talk to him, are you afraid of their own grief that would preclude him from peaceful life.

You will be a song, a color, think of him, think of my wow gold his sincerity, he reminds me of the dedication, his mind had gone through the ups and downs together. With such a friend, you will treasure their lives and love their own lives, because you know I hope you had a good, he would like you to take care of themselves properly, and then to meet, he cheapest wow power leveling would like you to tell him you very happy.

That the concept of secularism, in your mind, because his replica replica rolex presence has become pale and weak, you are only in the depths of the bottom of my heart for this man set up a small space, stick with that quietly happy memories, from the the very beginning you know that you will not have any love, it seems that talk about love on the desecration CHEAP wow power level of this emotion, this can only be a friendship. This is how in the end all about? You want to for many years, but no clue.

You seldom have contacts in this long life, you meet the door may be only a few of the ten thousandth time, but in each other's hearts retain a miss, one asked, even if he went to the ends of the earth, even after many, many years, even BUY power leveling when the meet again, has long been a non-object is not, you still remember back as a profound, and this has been sufficient.

Sometimes life will calm a dry, maybe you will fall into the dry I replica rolex replica did this, perhaps what you do not have love, perhaps early HUAFA, full sideburns pale, but with such a friend, in the your life will ripple slightly, a little color, do you think of him. He remembered the quiet, perhaps the Health and cheap lotro gold the WHO will not forget.

Am grateful for you in this world, there is such a person, he is replica rolex not around you, he did not do anything for you, but you hope that he would have been very good, long life, happiness well-being ... ...

Am glad you had a feeling like that, pure and long, in this complex CHEAPEST power leveling world, there are such a friend, it is worth to cheap rs gold lbless you to miss ... ...

Wed Jun 10, 12:30:00 AM EDT  
Anonymous Anonymous said...

コンタクトレンズ
国内格安航空券
おまとめローン
留学
インプラント
CloneDVD

Mon Jul 13, 12:36:00 AM EDT  
Anonymous Anonymous said...

クレジットカード 現金化
会社設立
キャッシング
ダンボール
アダルトDVD
水 通販
アルカリイオン水

Mon Jul 13, 12:37:00 AM EDT  
Blogger ally said...

moncler jacketsmonclermoncler coatsmoncler t-shirtmoncler vestmoncler outletugg bootscheap ugg bootsdiscount ugg bootsugg classic tall bootsclassic ugg bootsmoncler jacketsmoncler
new moncler coatsmoncler vestmoncler outletmoncler polo t-shirtcoach outletcoach handbagscoach bagscoach totescoach outletlouis vuitton handbagsLV handbags 2010Louis Vuitton bags
Louis Vuitton totesrain bootsrainweardiesel jeansTure Religion Jeanslevis jeansabercrombie and fitch outlet
ed hardy wholesaleed hardy outletcheap ed hardy wholesalediscount ed hardy wholesalewholesale ed hardyGHDGHD straightenersCheap GHDDiscount GHDGHD OutletGHD New Pink

Fri May 07, 02:20:00 AM EDT  
Blogger ally said...

Fashion trends change on daily basis, like Gold GHD. Following the latest in designer shades has become a passion of everyone, now Burberry Sunglasses. If you are the type of a woman who loves to explore in fashion, our ED Hardy Sunglasses will definitely satisfy your taste. Cheap Ed Hardy Sunglasses is also OK. Ed hardy streak of clothing is expanded into its wholesale ED Hardy T-shirt chain so that a large number of fans and users can enjoy the cheap ED Hardy Clothing range easily with the help of numerous secured websites, actually, our ED Hardy Outlet. As we all know, in fact discount ED Hardy, is based on the creations of the world renowned tattoo artist Don Ed Hardy. Well, this question is bound to strike the minds of all individuals. Many people may say Prada shoes is a joke, but we can give you Prada Sunglasses, because we have Prada handbags. Almost everyone will agree that Prada Purses are some of the most beautiful designer handbags marketed today. Now we have one new product: Prada totes. The reason is simple: fashion prohibited by ugg boots, in other words, we can say it as Cheap ugg boots. Would you like to wear Discount ugg boots. We have two kinds of fashionable boots: classic ugg boots and ugg classic tall boots. Ankh Royalty--the Cultural Revolution. Straightens out the collar, the epaulette epaulet, the Ankh Royalty Clothing two-row buckle. Now welcome to our Ankh Royalty Outlet. And these are different products that bear the most famous names in the world of fashion, like Ankh Royalty T shirt by the way -Prada, Spyder, Moncler(Moncler jackets,or you can say Moncler coats, Moncler T-shirt, Moncler vest,and you can buy them from our discount Moncler outlet), GHD, ED Hardy, Ankh Royalty, Twisted Heart.

Fri May 07, 02:22:00 AM EDT  
Blogger dfadf said...

Microsoft Office
Office 2010
Microsoft Office 2010
Office 2010 key
Office 2010 download
Office 2010 Professional
Microsoft outlook
Outlook 2010
Windows 7
Microsoft outlook 2010

Tue Nov 02, 01:12:00 AM EDT  

Post a Comment

Links to this post:

Create a Link

<< Home