Comments for The U.S. Government Can Do Something About the Exchange Rate with the Yuan at http://www.cepr.net , comment 1 to 6 out of 6 comments http://www.cepr.net Tue, 21 May 2013 04:45:21 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/beat-the-press/the-us-government-can-do-something-about-the-exchange-rate-with-the-yuan/#comment-390 "There is nothing that prevents the Treasury of offerring to buy yuan at a higher price, for example 20 cents." But residents of China are not free to sell yuan to the Treasury, are they? I suppose there is a black market somewhere, in which the yuan trades at a premium to the official rate, but I can't see how this proposal is supposed to work unless the black market is very substantial. - Kevin Donoghue Sun, 02 May 2010 03:16:38 +0100 http://www.cepr.net/index.php/beat-the-press/the-us-government-can-do-something-about-the-exchange-rate-with-the-yuan/#comment-366 The People Bank of China achieves it's peg by issuing liabilities in renmenbi, and lending in dollars (buying treasuries). It's only able to do this because the United States has open capital markets in which foreigners or foreign central banks can buy US treasuries. China does not allow the same, having very resricted capital markets, so there is no mechanism by which the US could enforce the peg. - Mark Fri, 30 Apr 2010 14:46:09 +0100 http://www.cepr.net/index.php/beat-the-press/the-us-government-can-do-something-about-the-exchange-rate-with-the-yuan/#comment-353 For a non-economist like myself who reads the news regularly, if I were to take the news economics reporting at face value I would probably have some very incorrect assumptions. That's why for me it's really helpful (and entertaining) to read Dean take apart the days stories from the economic headlines. This story in particular shed light for me where I otherwise would have no alternative ideas. Thanks again Dean! - Nick B from DC Fri, 30 Apr 2010 05:20:51 +0100 http://www.cepr.net/index.php/beat-the-press/the-us-government-can-do-something-about-the-exchange-rate-with-the-yuan/#comment-350 Don't shoot the messenger, unless the message is not really rational, AND it is in really, really bad poetry. Get a life. - nassim Fri, 30 Apr 2010 04:10:35 +0100 http://www.cepr.net/index.php/beat-the-press/the-us-government-can-do-something-about-the-exchange-rate-with-the-yuan/#comment-349 Dean, Your comment really is bizarre. Just ask, what would Goldman do? The answer is sell yuan to the US and buy yuan from China. How big would the Goldman bonus pool then be? Those critical of buying oil from noxious foreigners would really be pleased with pumping dollars to noxious bankers. - Ron Alley Fri, 30 Apr 2010 03:23:42 +0100 http://www.cepr.net/index.php/beat-the-press/the-us-government-can-do-something-about-the-exchange-rate-with-the-yuan/#comment-345 To beggar thy nation which has beggared you, Violates free markets of floating exchange, A cardinal sin of the highest order, Worse than regulation of derivative fodder, Bretton Woods socialism of fixing prices, So multinational imports can survive on vices. - izzatzo Fri, 30 Apr 2010 02:00:54 +0100