I’ve just published a foreign policy-related post at Outside the Beltway:
“Chinese Currency Manipulation”
In this post I highlight a pair of articles, one an interview with Treasury Secretary Tim Geithner and the other a column by Paul Krugman, complaining at China’s reluctance at letting its currency trade at market values. I make some proposals for addressing the issue including insisting that China live up to its commitments it made when it was admitted to the WTO. If they’re going to enjoy the benefits of membership, they should do what they promised to do in order to gain membership.
I have been reading about China currency manipulation and especially how China is buying lots of Japanese Yen and driving the price of Yen up against the dollar so their currency is more competitive. China does need to open its currency to the free market, but avoids this to stay “the cheaper” option for companies who outsource.