Yuan appreciation won't help solve US problems
By Ariel Tung | China Daily | Updated: 2011-02-15 07:50
New York - As unemployment numbers have soared in the United States, China-bashing has become legitimate in the eyes of some politicians who claim the "undervalued" yuan gives Chinese exports an unfair advantage.
However, the real problem is that the US doesn't save, says Morgan Stanley Asia's Non-Executive Chairman Stephen Roach, who supported the US Treasury Department's decision not to label China a "currency manipulator".
Roach told China Daily in an exclusive interview that pressurizing China into allowing the yuan to appreciate rapidly will not eradicate the economic woes in the US. "We're lashing out at China rather than tending to our own business which should be to boost US savings rates," Roach said.
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