Comments on: The Quest for Global Balance http://baselinescenario.com/2008/11/13/china-undervalued-currency/ What happened to the global economy and what we can do about it Sat, 02 Jun 2012 18:26:14 +0000 hourly 1 http://wordpress.com/ By: Kong Jie http://baselinescenario.com/2008/11/13/china-undervalued-currency/#comment-1018 Fri, 14 Nov 2008 02:42:53 +0000 http://baselinescenario.wordpress.com/?p=1185#comment-1018 I don’t see China being the least tempted to agree to such an arrangement. The inducements Arvind mentioned are laughably inadequate. The second point, voting share in the IMF, is probably regarded by the Chinese as something they should have anyway, and not part of some quid pro quo.

In any case, there are sociopolitical reasons for having large current surpluses. Attempts to discourage it at this time will be a waste of effort.

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