U.S. Needs Patience, not Threats, to Address China Currency Appreciation

Few pages in the American political playbook have proven more resilient over the last decade than blaming China’s undervalued currency, the yuan, when the U.S. economy sags. When Beijing announced last month that it was unpegging its currency from the dollar and implementing a more flexible exchange rate system, it came after more than a year’s worth of constant but unsuccessful pestering from Congress and the Obama administration. Now, with more than a month of this new “flexible” regime in the books, American politicians are unimpressed with the yuan’s paltry appreciation against the dollar, and are once again calling for […]