Andy Xie: Obama Is Wrong, A Yuan Repricing Won't Do Squat

Hong Kong-based economist Andy Xie thinks Obama is fooling himself if he really believes a yuan repricing will help anything. The issue is not exchange rates, he tells Bloomberg, but rather China’s propensity to save — an issue that will only be remedied, through better tax and industrial policy.

This is a common argument: there won’t be much Chinese spending, until the citizens feel absolutely certain of their future economic security.

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