From Morgan Stanley’s Global Economic Forum:
Chinese currency policy has now become a cause c√©l√®bre in world financial markets. To peg or not to peg — and against what and when — are choices only China can and should make. But given China’s increasingly important role in the world economy, there are important global consequences of these choices. The outcome could well bear importantly on world financial markets, the politics of trade liberalization, and ultimately the rebalancing of a lopsided world. To paraphrase a famous quip about the dollar uttered by former US Treasury Secretary John Connally in the early 1970s, “The renminbi may be China’s currency, but it is our problem.”
