From Chinese Press

Economics is a soft science

(chinadaily.com.cn)
Updated: 2010-09-20 14:04

Comment on "No repeat of Japan's mistake: official"

Economics is a soft science because we are dealing with human psychology. Gravity isnt fickle, but humans are. So when we talk about market price, what we mean is what 6 billion people on this earth think the price of a product or currency should be.

Maybe they are wrong, maybe they are right. But market price lets the 6 billion rightly or wrongly decide the value of a currency.

And the general consensus is that the RMB should not be 6.7 per dollar. It should be much stronger than that. And we can not find out what the RMB is worth according to 6 billion people until PBOC auctions off RMB and exports it to the world at the price the worlds population is willing.

PBOC has an endless supply of RMB. Dont worry, PBOC will never run out.

 

Tienfei, on China Daily Website

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