January 14

New World Order

Monday’s Big Idea

Global Currency

One of the most oft-repeats excuses for America's competitiveness slump has been that China is not playing by the same rules, and is a "currency manipulator." In other words, China was artificially depreciating the value of its currency in order to keep the price of exports cheap. 

This may have been the case a few years ago, but it is certainly not the truth today. 

"China has allowed the Yuan to appreciate in value against the dollar and Euro and other major currencies," Big Think chief economist Daniel Altman says, "and now there are very few analysts who would say that it's artificially depressed."

This is a sign that Chinese consumers have a lot more buying power, and "the Chinese Yuan could become a reserve currency around the world.

  1. 1 China: From Drag to Dragon
  2. 2 China Won't Pass the U.S. as a Su...
  3. 3 The End of the Dollar?
  4. 4 The Renminbi Could Become the Wor...
   
  1. China: From Drag to Dragon

    China: From Drag to Dragon

    "China has allowed the Yuan to appreciate in value against the dollar and Euro and other major currencies," Daniel Altman says, "and now there are very few analysts who would say that it's artificially depressed."

    Read More…
  2. China Won't Pass the U.S. as a Superpower Anytime Soon

    China Won't Pass the U.S. as a Superpower Anytime Soon

    The country is a "formidable opponent," but the United States will remain the world's leading superpower for the foreseeable future.

    Read More…
  3. The End of the Dollar?

    The End of the Dollar?

    The dollar is still the dominant reserve currency, but for how long? The IMF has recently forecast that China's economy will overtake that of the U.S. in 2016. How will this effect the global monetary system?

    Read More…
  4. The Renminbi Could Become the World’s Reserve Currency

    The Renminbi Could Become the World’s Reserve Currency

    Even if it causes global tension and takes awhile, the Yuan could become the world’s go-to reserve currency if these four changes happen in China.

    Read More…