Asia Times Online :: Currency Crossroads

PART 1: Follies of fiddling with the yuan
China is not the problem, dollar hegemony is. By not succumbing to US pressure to change its exchange or interest rates, China is just trying not to repeat the mistakes of US monetary policy. Any policy-induced appreciation of the yuan will only push the world into an inflation spiral.

PART 2: Tequila trap beckons China
Understanding how the Mexico crisis unfolded is fundamentally important to assess the mechanics of currency crises. It's particularly important for China at this juncture, as US monetary policy wonks seem to be guiding it down the same road.

PART 3: Futures imperfect for China
Swaps, options and futures - it's a dangerous world out there, where no risk is ever really hedged. No one understands the magnitude of the destructive force that the tiniest rupture can trigger. It's a puzzle why China is so keen to join a system that invites self-destruction.

PART 4: China steady on the peg
The Chinese premier's statement that the yuan's peg will not be changed under pressure couldn't have been more timely. The need of the hour is to generate jobs and raise wages, not revalue the currency.

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