By Michael Pettis
From July 2005 to February this year the RMB rose by just over 30% in nominal US dollars. Although on a trade-weighted basis, adjusted for changes in relative productivity growth, the revaluation has been much less than 30%, the increase in the value of the RMB has nonetheless been seen, correctly, as a part of China’s rebalancing process.
About The Author - Michael Pettis is a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking University. He received an MBA in Finance, and an MIA in Development Economics, both from Columbia University. Michael is also the author of The Volatility Machine, and maintains a blog at china financial markets. (EconMatters author archive here)
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
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