Don't play with exchange rates: A protest from an onlooker

Author: Xiang Songze
Publisher:
Publish Date: 2006-09-01
Features: Systematically refutes various fallacies surrounding the RMB exchange rate policy, completely overturns traditional wisdom and mindset in exchange rate theory, which is the sole purpose of this book; rigorous logical analysis, rich historical facts, broad international perspective, sharp language style are the distinctive features of this book; the US 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 basic conclusion of this book. To destroy a country, one must first destroy its currency; to disrupt a country's economic growth, one must first disrupt its financial and monetary system. High-ranking officials in the US and Japan are well aware of this. Many so-called theories supporting RMB appreciation and RMB exchange rate floating cannot stand the test 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 US 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 timely and prudent in their decisions, skillfully navigate the situation, and make cautious choices. With a grand perspective and a powerful pen, the author discusses the tumultuous history of the international monetary system over the past century, exploring the survival space and techniques under the dollar-dominated system. His profound intentions and patriotic sentiments will be recognized by those who understand.