A different take on exchange rate and trade deficit reality from two experts writing in the Christian Science Monitor:
‚Ä¢The low savings rate by Americans means the US will continue to have a large global trade deficit. Forcing Chinese currency appreciation will just shift the deficit to other countries.
‚Ä¢When Congress focuses on the currency issue, it is addressing the least important source of the US trade deficit.
‚Ä¢If Congress pressures the Inter-national Monetary Fund to censure China regarding its currency, the IMF might be obligated to censure the US for its domestic economic policies that are a more important cause of its global trade deficit. [Full Text]