Is future Chinese currency policy going to cause inflation?

Discussion in 'Economics' started by PlusMinus, Nov 24, 2009.

  1. The Chinese are being pestered to de-peg their Yan from the dollar. They have so far refused. We saw it increase value from 2005-2008 when it was de-pegged.

    Clearly they're protecting their exports. Question is, if they continue to see solid growth into 2010, will they ease up on the control and essentially favor a tighter monetary policy? And won't that be a nearly instant cause for price inflation in the US?

    Some will say it will pave way for US industry to compete, but that won't happen overnight.

    Thoughts?