Global Economy & China's Currency: Revaluation's Impact on Imbalances

This report provides a comprehensive analysis of China's currency revaluation and its effects on global economic imbalances. It begins with an introduction to the topic, followed by a discussion of the economic factors influencing the issue, including the role of China's exchange rate policy, the US-China trade imbalance, and the impact of currency revaluation on global imbalances. The report examines the arguments for and against revaluation, considering its potential benefits and drawbacks, such as job losses, lower exports, and currency speculation. The analysis includes figures illustrating the current account of the US and China. The report concludes that the revaluation of the Chinese currency, the renminbi, may not be the sole solution to correct global imbalances, and further measures are needed to minimize the imbalances between the US and China and promote a balanced global economy. The report references several academic sources to support its arguments.