New York Times: It’s No Time for Protectionism

The New York Times has an editorial looking at the flap over Timothy Geithner’s statements about the yuan rate:

Just days after Mr. Geithner pointed his finger at China, Wen Jiabao, the Chinese prime minister, pointed his own finger right back. Speaking at the World Economic Forum in Davos, Mr. Wen blamed the United States for the economic crisis the world is now experiencing. He talked in particular of “the failure of financial supervision.”

Most likely, Mr. Wen was aware that one of the important players in the United States supervisory system has been Mr. Geithner, who until recently was president of the Federal Reserve Bank of New York. In that role, Mr. Geithner was, for example, the primary federal regulator for Citigroup. Mr. Wen may have been suggesting — quite rightly — that the new Treasury secretary should focus his energy on fixing problems a bit closer to home.

But timing aside, is Mr. Geithner right about the currency question? Are Americans hurt by China’s exchange-rate policy?

February 8, 2009 10:49 PM
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