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Here’s another letter to the Washington Post on Harold Meyerson’s China-bashing:
Harold Meyerson, like many pundits, continues to write as if there is no question that the Chinese renminbi is undervalued (“The real un-Americans [2],” Sept. 24).
But there is question – plenty of it – and from some of the world’s most respected and non-partisan international-economics scholars. In today’s Wall Street Journal [3], for example, the eminent Stanford economist Ronald McKinnon applauds Beijing for pegging the renminbi to the dollar – a policy that, McKinnon argues, is key to the current impressive increase in wage rates throughout China. The legislation now on the Hill to ‘punish’ China for its monetary policy will, if enacted, slow wage growth in China and, thus, obstruct what McKinnon calls this “important mechanism for balancing international competitiveness.”
Sincerely,
Donald J. Boudreaux