Stephen Roach, former chairman of Morgan Stanley Asia, said that it is a big misunderstanding for Americans to blame Chinese for the job losses in the United States.
He noted that even if China were to raise its currency yuan by 25 percent immediately, it would not save the U.S. economy or U.S. workers. It is wrong for Washington and American citizens to accuse China of undervaluing the yuan and to cite this as the cause for the U.S. economic recession, the trade deficit or unemployment, Roach said.
While the United States has a trade deficit with 90 countries, the Senate still insists that the huge U.S. deficit in current accounts was caused by weak Chinese currency. Roach does not agree with them.
He argues that the currency-depreciation weighted negative deposit rate in the United States, including residents, companies and the government, is the underlying reason for the problem that the United States is facing now.
By Li Jia, People s Daily Online
He noted that even if China were to raise its currency yuan by 25 percent immediately, it would not save the U.S. economy or U.S. workers. It is wrong for Washington and American citizens to accuse China of undervaluing the yuan and to cite this as the cause for the U.S. economic recession, the trade deficit or unemployment, Roach said.
While the United States has a trade deficit with 90 countries, the Senate still insists that the huge U.S. deficit in current accounts was caused by weak Chinese currency. Roach does not agree with them.
He argues that the currency-depreciation weighted negative deposit rate in the United States, including residents, companies and the government, is the underlying reason for the problem that the United States is facing now.
By Li Jia, People s Daily Online
