Currency adjustments postponed

Yet again Chi­na has avoid­ed any spe­cif­ic com­mitt­ments on float­ing it’s cur­ren­cy, which is high­ly like­ly to appre­ci­at­ed in val­ue were it not pegged to a US dol­lar rate. bq. What was left unsaid was that the cur­rent eco­nom­ic imbal­ances are boost­ing eco­nom­ic per­for­mance of most large economies and there is lit­tle appetite for the mea­sures that could reduce them, such as tighter fis­cal or mon­e­tary pol­i­cy to reduce demand in the US or an appre­ci­a­tion of Asian cur­ren­cies against the US dol­lar. (“Finan­cial Times”:–11d9-8997–00000e2511c8.html) It’s no cri­sis as I’ve “acknowl­edged before”: They can go on tak­ing in each oth­er’s wash­ing for a long time. But there’s an adjust­ment com­ing: sure as christmas.

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