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Can a Revaluation of the Chinese Yuan Solve U.S. Economic Woes?
(From Journal of Japanese Trade & Industry (JJTI))
Byline: Fred Hu
The Chinese yuan has become a lighting rod of late in U.S. domestic politics. Critics, ranging from the U.S. Manufacturers' Association to members of the Congress attribute nearly everything that has gone awry in the U.S. economy to a supposedly undervalued Chinese currency, which, the argument goes, has unfairly boosted China's export competitiveness and led to a widening U.S. current account deficit and losses of tens of thousands of manufacturing jobs. The debate on the Chinese currency has become so politicized and so detached from the basic underlying facts that it is likely to ...
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