World Bank's Lin Warns Against Yuan Appreciation |
|
November 9, 2009
World Bank Chief Economist Justin Yifu Lin staked out a strong position against forcing China to let its currency appreciate as a way to rebalance the world economy. "Currency appreciation in China won't help this imbalance and can deter the global recovery," he said in a lecture Monday at the University of Hong Kong.
World Bank Chief Economist Justin Yifu Lin staked out a strong position against forcing China to let its currency appreciate as a way to rebalance the world economy.
"Currency appreciation in China won't help this imbalance and can deter the global recovery," he said in a lecture Monday at the University of Hong Kong.
Mr. Lin's lecture comes as policymakers including European Central Bank President Jean-Claude Trichet, officials at the International Monetary Fund and in Japan, have called for China to let its managed currency, the yuan, appreciate against the dollar.
China has kept the yuan level with the U.S. dollar since mid-2008. The U.S. current account deficit has shrunk substantially during the recession, but as the world economy recovers, the fear is global economic imbalances could swell again and spark new problems, especially dangerous asset bubbles.
Related Links
