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China's Currency. How Low Can You Go?

By Dan Harris and Steve Dickinson

The International Law and Policy Blog is just out with a post that very nicely summarizes various positions on China's currency. The post is entitled, "Summary of China Currency Views," and it seeks to do the following:

I thought it might be interesting to gather up the various views that have been expressed on the China currency issue. I have two key questions in mind: 1) Is the Chinese currency peg at an (allegedly) undervalued rate bad for the U.S. economy/global economy? 2) If it is bad, what is the appropriate response? Here's a brief rundown of some views expressed by prominent bloggers/op-ed writers/others on each point, in no particular order.

It does a nice job setting forth the various views and providing good links to people who put forth various well-reasoned arguments for all sorts of positions. I could not read it without thinking of one of my favorite economics jokes:

An economist, a physicist and a chemist are stranded on an island with one unopened can of food. The physicist suggests they roll the can down a hill where it will strike a rock which will pierce the can and release the food. The chemist suggests they cool the can in the ocean then heat it in the sun so as to cause the can to burst. The economist suggests they assume they have a can opener.

What do you think?

Full post as published by China Law Blog on March 31, 2010 (boomark / email).