Some Random Thoughts on the Chinese Yuan

A few days after I posted “Should China depreciate Its currency?” (July 25), I was told that the Chinese yuan has slowed its rate of appreciation. It is a pure fluke – and I claim no sixth sense in predicting exchange rates. It is now more than a month after post, I find it quite […]

Should China depreciate Its currency?

On July 21, 2005, China loosened its grip on its exchange rate and allowed its currency, the Renminbi (RMB) to appreciate against the US dollar. The policy change was cautiously welcomed as a step in the right direction to reduce global imbalances – the uncertainty is how rapidly RMB is allowed to appreciate. Anecdotal evidence, […]

Another Tale of China and India: International Reserves

In recent years, it is common that China and India are mentioned and compared in the media and academic articles. Both China and India are among the world’s oldest civilizations, and have a rather short history of economic reforms and integration with the modern global economy. The emergence of these two populous countries has presented […]

Veracity of Chinese Output data and Renminbi Valuation

The reliability of Chinese official statistics is the topic of a recent Economist article (An aberrant abacus, May 1, 2008). Given its sheer size and diversity, it is understandably difficult to compile China’s Gross Domestic Product (GDP) figures. The contentious issue is whether the Chinese government deliberately overstates GDP figures. For instance, some commentators accused […]