U-T EconoMeter: China - a currency manipulator?
Econometer panelists analyze the pros and cons for U.S. consumers
Roger Showley, U-T SAN DIEGO
Friday, October 26, 2012
Kelly Cunningham, National University System
Although hypocritical and somewhat laughable for the U.S. to label someone else a currency manipulator, there are economic reasons to call China out for artificially keeping their currency too low. U.S. manufacturers and lawmakers legitimately complain China undervalues its currency to give its companies an unfair price advantage in international trade. The policy would set a new tone showing U.S. willingness to take China to task over a wide range of trade violations, including intellectual property theft and restrictions on market access for U.S. companies in China. The U.S. should follow the prescription of not manipulating our own currency as well.