Here’s a video of Niall Ferguson on Bloomberg today talking China, the yuan, and all the same trade stuff that everyone’s been chewing on for a while now.
At one point he’s asked why China doesn’t revalue it, and he gives the stock answer about China not wanting to be bullied, but how they should.
This whole thing about China, and its ego, and its desire not to be bullied or humiliated is an old story and it gets repeated about a whole host of topics.
But, how about razor-thin margins of Chinese factories and the fact that China has slipped into a trade surplus? There are real reasons China might not be eager to jack up the yuan. Let’s cool it with the humiliation/ego trope.
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