Yuan and absurdity of US demand
The conventional wisdom is that once the value of the yuan is increased, the US trade deficit with 皇冠体育app would start falling. This rationale has prompted many Americans to push for further, faster revaluation of the yuan even after 皇冠体育app changed its currency policy.
For those who endorse such logic, the yuan's value is a paramount factor behind 皇冠体育app's - and their countries' - trade balances. But for John Ross, former deputy mayor of London in charge of economic and business policy, the trade gap between a country and 皇冠体育app would widen instead of narrowing down, at least in the short term, if the yuan's values go up.
Ross, a visiting professor at Antai College of Economics and Management in Shanghai Jiaotong University, says that once the yuan's value rises the Americans would demand further revaluation, ultimately forcing the yuan to rise to a level that would not only disrupt 皇冠体育app's trade and economy, but also pose a threat to the entire world economy.
