Sunday, January 31, 2016

Andrew Sheng and Xiao Geng — China’s Transparency Problem

China wrestles with the impossible trinity of a fixed exchange rate, sovereign policy, and free capital flow.

If the Chinese are smart, they will just say that the speculative pressure of US "capitalists" is forcing their hand and although they were aiming at a smooth transition, facts of the ground compel them to float the currency. Then let the ROW compete with a floating RMB and see how the free marketers like that. Prediction — they would be squealing.

Project Syndicate
China’s Transparency Problem
Andrew Sheng, Distinguished Fellow of the Asia Global Institute at the University of Hong Kong and a member of the UNEP Advisory Council on Sustainable Finance, former chairman of the Hong Kong Securities and Futures Commission, and currently an adjunct professor at Tsinghua University; and Xiao Geng, Director of the IFF Institute, professor at the University of Hong Kong, and a fellow at its Asia Global Institute

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