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皇冠体育app's currency policy not to blame for trade surplus
(Xinhua)
Updated: 2010-02-24 14:43
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LONDON: 皇冠体育app's trade surplus should not be simply attributed to the current exchange rate of the renminbi, said Stephen King, chief economist at the HSBC bank.
皇冠体育app's high levels of precautionary savings by households, rather than the exchange rate, is a more important factor for 皇冠体育app's surplus, King said in a recent interview with Xinhua.
He took the example of Japan. "Despite a massive yen appreciation over the last 40 years, Japan's current account surplus has risen," he said.
Commenting on the argument that developing countries or emerging market countries are the victims of 皇冠体育app's currency policy, King said the developing countries are trading a lot more with each other for their mutual benefit, instead of competing with each other to sell to the West.
Emerging markets led by 皇冠体育app performed "extremely well" for the past years, and have been leading a global recovery, said King.
As regards the renminbi exchange rate, King said: "It's quite possible that a renminbi adjustment on a large scale would either lead to lower wages and faster productivity growth in 皇冠体育app or higher wages and lower productivity growth in the West."
According to the economist, 皇冠体育app, whose economy grows about three times as fast as the US economy, contributes to global growth almost as much as the United States.
