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Many analysts say China will move to a more flexible currency, just not now.
Moreover, relative to its European rivals, the U.K. has one enormous advantage: a flexible currency.
In July, China made a modest step toward adopting a more flexible currency policy.
A more flexible currency would itself assist the development of such a market.
A flexible currency does not, then, exempt a country from its influence.Dani Rodrik also contributed to the same 2011 report.
A stronger, more flexible currency would make it easier for China to control inflation and asset bubbles.
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Even Milton Friedman, the most passionate advocate of flexible currencies, believed that currency union with a big steady neighbour was the best policy for small developing economies.
But many are facing the present danger in stronger shape than ever before, armed with large reserves, flexible currencies and strong budgets.
With a limited number of flexible currencies, the euro is taking most of the strain.In this section Exit Arafat After Fallujah The nuclear route Where does the buck stop?
Though there have been bouts of jitters notably in Brazil in the summer of 1999 the newly flexible currencies of Latin America have actually been quite stable.Floating not sinkingMoreover, countries do seem to have succeeded in hitting their inflation targets, at least so far.
Your analysis, that a more flexible Chinese currency regime would have a small effect on America, understates the threats to price stability.
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