Do not play with exchange rates - a protest from an onlooker

Author: Xiang Songze
Publisher:
Publish Date: 2006-09-01
Features: Systematically refuting various fallacies surrounding the RMB exchange rate policy, completely overturning traditional wisdom and mindset in exchange rate theory is the sole purpose of this book; rigorous logical analysis, rich historical facts, grand international perspective, and sharp linguistic style are the distinctive features of this book; the United States and Japan forcing the RMB appreciation and RMB exchange rate floating aim to curb China's rapid, sustained, and stable economic growth, which is the fundamental conclusion of this book. To destroy a nation, one must first destroy its currency; to disrupt a nation's economic growth, one must first disrupt its financial and monetary system. High-ranking officials from the United States and Japan are well aware of this principle. Many so-called theories supporting RMB appreciation and RMB exchange rate floating cannot withstand the examination of theoretical logic and historical facts. The continuous emergence of fallacies is because some economists ignore the basic institutional arrangements of international finance and monetary systems, and their understanding of the basic concepts of economics is superficial. Economics textbooks must be rewritten. Although the RMB has embarked on a path of slow appreciation and managed floating, the United States and Japan will not give up easily, and the pressure for RMB appreciation and RMB exchange rate floating will persist in the long run. Chinese policymakers must have a far-sighted vision, be perceptive of the times, skillfully mediate, and make cautious decisions. With a grand perspective and a powerful pen, the author discusses the turbulent history of a century in the international monetary system, exploring the survival space and techniques under the dollar-dominated system. His profound intentions and patriotic sentiments will undoubtedly be recognized by those who understand.