Chinas controversial Exchange rate policies

CHINA 'S CONTROVERSIAL EXCHANGE RATE POLICIES

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University A look across major economies of East Asia indicates that these countries pursue different exchange rate policies . Hong Kong for example has linked its dollar to the American dollar Japan pursues an independently floating rate together with South Korea . Most , however have taken to managing the rate to ensure a close monitoring of the fluctuation . As the global recession bites and consequently the US economy finds itself in a pitiful situation , the US dollar has been hit

br the worst in comparison with other major currencies . The response by some of the leading economies has been swift although in varied ways The United States over the years has been an adamant supporter of a free float ' where it comes to the exchange rate policies , this however is not the case when it comes to the East Asian countries which have a wide preference for a managed float ' These policies have been a source of tension with the United States in the belief that the subsequent manipulation of the exchange rate was adversely affecting the competitiveness of the United States goods in the international market

Chinas exchange rates policy has been a source of international controversy and has attracted a flurry of scholarly attention . The intent and purpose of this will be to critically analyze this controversy

Undoubtedly , Chinas role as a global player has been catapulted in the recent past and it has become one of the fastest rising...