For more than 25 years, Project Syndicate has been guided by a simple credo: All people deserve access to a broad range of views by the world's foremost leaders and thinkers on the issues, events, and forces shaping their lives. At a time of unprecedented uncertainty, that mission is more important than ever – and we remain committed to fulfilling it.
But there is no doubt that we, like so many other media organizations nowadays, are under growing strain. If you are in a position to support us, please subscribe now.
As a subscriber, you will enjoy unlimited access to our On Point suite of long reads, book reviews, and insider interviews; Big Picture topical collections; Say More contributor interviews; Opinion Has It podcast features; The Year Ahead magazine, the full PS archive, and much more. You will also directly support our mission of delivering the highest-quality commentary on the world's most pressing issues to as wide an audience as possible.
By helping us to build a truly open world of ideas, every PS subscriber makes a real difference. Thank you.
MUNICH – Because China has pegged its undervalued currency, the renminbi, to the dollar, every weakening of the dollar in the wake of America’s financial crisis has also meant a weakening of the renminbi vis-à-vis other world currencies. But is China really to blame for the eruption of a global currency war?
The central banks of South Korea, Brazil, Taiwan, Japan, Switzerland, and many other countries are now buying dollars in order to protect their own currencies against revaluation and thus to defend their exports. Europe also became nervous after the euro exchange rate rose to more than $1.40, far beyond the purchasing power parity (PPP) rate of $1.17.
The United States is now taking drastic steps against China, and is making provisions for a trade war. Congress has authorized the President to impose import duties on Chinese products if China remains unwilling to increase the value of its currency substantially against the dollar.
We hope you're enjoying Project Syndicate.
To continue reading, subscribe now.
Subscribe
orRegister for FREE to access two premium articles per month.
Register
Already have an account? Log in