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| Home > Investment Memo > China Economy |
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| Yuan Undervalued, in Politics or Economics Terms? |
| Author£ºMaogeUpdate£º2010/3/23 16:10:10¡¡Browse£º761260 |
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| Over weeks, Chinese currency value was under grill, and it was at the burning point on March 15th when 130 US Congressmen in a letter accused China of artificially manipulating its currency, RMB, value low.
In the West, it is said that RMB is undervalued by 25 to 40% to U$ and other currencies. And in the US, an estimate of 41% devalued against U$ by Peterson Institute was widely picked up. Here is a question, how were the numbers figured out? Since RMB is nonconvertible at the moment, there is not a market for RMB valued by supply and demand, so all the figures must be calculated by an assumption. As a Consequence, a bias assumption could not be avoided while an exchange rate is put at front of a country¡¯s interest.
In addition, it matters in considering Yuan value from the angle one stands. For example, Economist (March 17th) cited again the so-called Big Mac Index showing its readers yuan is 49% below its fair-value benchmark with U$. I have 2 questions: 1) while looking at Big Mac price, why Economist forgot Mac¡¯s labor cost in China? 2) why didn't Economist pick up Costa Coffee¡¯s China prices as instead to show its readers?
The conclusion is arbitrary for a political purpose in the letter that the US politicians blamed China for maintaining Yuan devalued from the US-China trade deficit only. Similarly, any figures above calculated could not be more than a political purpose either.
No one denies Chinese currency has been a political issue for a long time. It is no surprise that it is now becoming hot button again. As Jim O¡¯Neill puts ¡°it¡¯s unfortunate that we (the West) have so much political angst around this.¡± since Yuan ¡°actually isn¡¯t particularly undervalued anymore¡±.
Is Yuan undervalued? It depends on your looking at it in a Politics way or an Economics way. |
| 11 Lutwilky |
2026/6/6 18:54:43 |
I¡¯ve often been circumspect about ordering medication online, but after doing my research, I decided to concede a licensed Canadian online pharmacy a try. I honestly desire I had done it sooner.
http://www.g5engineerings.com/success-stories-that-inspire-transforming-the/
The development was surprisingly straightforward. The website was undemanding to direct, and uploading my preparation took nothing but a not many minutes. What as a matter of fact impressed me was how despatch a natural apothecary reviewed the whole and followed up with a confirmation tag to effect my safety. That bulldoze of distress gave me instant truce of mind.
http://kursusstirmobilterdekat.com/navigating-ethical-dilemmas-in-the-pharmaceutical/
The savings are significant I¡¯m paying less than half of what my local rather was charging as a service to the same brand-name medication. Neck with shipping costs included, it¡¯s a fraction of the price. And no, there were no occult fees or bombshell charges at checkout.
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2026/5/13 1:22:14 |
Hello,
Dear Friends.
Now I would like to inform more about home page
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tell more about home page?!
So this most up-to-date information about home page will be
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On our web portal a little more about site, also information about website.
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Our Tags: Website, website, |
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2026/5/13 0:43:33 |
Hello,
Friends.
At this moment I would like to inform a little about home page
I think you are searching specifically about site or perhaps want tell more about website?!
So this more up-to-date information about site will
be the most useful for you.
On our web site a little more about website,
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perhaps want to learn more about home page?!
So this optimally up-to-date information about website will
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| 19 Gutwilky |
2026/4/26 12:51:46 |
I¡¯ve been using Online Drugstore as a service to the gone six months, and I couldn¡¯t be happier with their service. Ordering is wonderful unoppressive their website is cleanse, well-organized, and secure. I found quite what I needed within minutes, and the prices are surprisingly affordable compared to my townsman pharmacy.
https://fliphtml5.com/home/oktzm
The checkout deal with was silken, and they didn¡¯t whack to upsell me on anything unnecessary. I uploaded my direction, and within a few hours, I got a confirmation that it had been verified by a right, licensed pharmaceutical chemist which positively douse my inclination at ease.
https://leetcode.com/u/EkxbVnTfF5/ |
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2026/4/20 0:34:28 |
Am fost intrucatva ?ovaielnic sa procurez medicamente online pentru primei mele ocazii, dar aceasta farmacie a depa?it toate a?teptarile mele.
https://scanmark.webearit.ro/ghid-avansat-pentru-utilizarea-eficient-a-7/
Site-ul este curat ?i simplu de utilizat, iar eu am localizat ce aveam nevoie in doar momente. Ei au cerut o re?eta valida valabila, ceea ce m-a convins sa ma simt in siguran?a ?i asigurat ca totul a fost legal.
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