Addressing U.S.-China Currency Values the Way President Bush Did

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Thursday, 23 September 2010 05:12

There was virtually no decline in the real value of the dollar against the Chinese yuan during President Bush's presidency. This fact is an important point to mention in a Post article that told readers:

"The Obama administration, like the Bush administration before it, has preferred to address the currency issue through diplomatic channels."

The article misleadingly tells readers that, "negotiations won a 20 percent rise in the yuan during President George W. Bush's tenure." Virtually all of this increase was offset by the more rapid inflation rate in the United States, so the real value of the yuan against the dollar -- the relevant variable for trade -- changed little during the Bush years.