Skip to main content

The Chinese Renminbi: What’s Real, What’s Not

(PDF PDF icon)

China's recent devaluation and liberalization of its exchange-rate policies will, at best, have only a temporary impact on its trade competitiveness with the United States. The type of exchange-rate regime that a country adopts matters little for its long-term international competitiveness. In addition, the recent focus on China's exchange rate diverts attention from the real problem: China’s command economy.

China's recent devaluation and liberalization of its exchange-rate policies will, at best, have only a temporary impact on its trade competitiveness with the United States. The type of exchange-rate regime that a country adopts matters little for its long-term international competitiveness. In addition, the recent focus on China's exchange rate diverts attention from the real problem: China’s command economy.


Suggested citation: Higgins, Patrick, and Owen F. Humpage, 2005. "The Chinese Renminbi: What’s Real, What’s Not," Federal Reserve Bank of Cleveland, Economic Commentary, 08.15.2005.

Upcoming EventsSEE ALL