New Guestbook Entry by jerry

Submitted By Michael Pettis
Thanks for your reports on China macroeconomics. I have invested a third of my retirement funds in the renmimbi with the understanding that a currency peg cannot be sustained with a large China reserve buildup (with resulting pressures on internal money supply) and the US offsetting large current account deficit. My question is: how would a substantial increase in China PPI over the next 12-24 months change the macro dynamics of the renmimbi (ie. what does macro theory tell us about inflationary impact on the need to allow renmimbi appreciation)? Thank you for your insights.

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