China’s Gift to Europe

Europeans are wrong to be angry with China because its currency peg to the US dollar has boosted the euro against most currencies on foreign exchange markets. On the contrary, they should view the currency peg as a valuable gift.

In New York and other American cities, European shoppers are on a spree. They’re enjoying first hand the euro’s enhanced purchasing power abroad.

The currency peg has also helped make the euro into an important reserve currency, rivaling the dollar. Investments from all over the world are flowing into Europe as a result.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

http://prosyn.org/wQTnaAo;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.