More and more we are hearing a call for China to allow their currency to float, that it’s undervalued. But if their currency rose, wouldn’t the Dollar fall? Aren’t we concerned about a falling dollar more than another country’s currency being too low? Not quite my area of expertise, yet.
Joe
A very interesting conversation. My thought is that the dollar would fall against China’s currency, not necessarily against the rest of the currencies of the world. If our currency fell vs the currency in China, our goods would appear less expensive to the chinese and their products would appear more expensive to people in the United States. If that is the case, we would likely buy less Chinese products while they purchased more items from the US. Seems to me like this would be a good thing if you are from the US. A very complicated, but interesting subject.
Nice Graphic by the way!
I have a hard time understanding foreign policy. I get diplomacy but where are our limits? We need to stop worrying about every other nation under the sun and look within our own house, as it is falling into disarray…