Hi, I'm new and trying to learn more about economics, I watched this video: http://www.khanacademy.org/humanities---other/finance/core-finance/v/pegging-the-yuan (about the pegging of the Yuan to the US Dollar) and was wondering if I were right in my analyzes that: 1. Because of growing efficiency in the Chinese economy the export to the US would still remain about as large in the event that the Yuan would appreciate relative to the Dollar, because there are less producing costs? (not taking into account deflationary effects) 2. By pegging the exchange rate like this they are transferring "buying power" from the Chinese companies to the Chinese bank, especially foreign "buying power"? I'm somewhat aware of the destructive powers of deflation on an economy so printing money makes sense from that point of view, what I'm really trying to figure out is, because prices are a mere tool for coordination of an economy, is what this intervention changes in respect to if the exchange rate would be free-floating.