Why China’s policymakers are relaxed about a falling yuan
They have learnt how to walk down stairs
In 1988 paul krugman, a Nobel-prizewinning economist, wrote that it was “fairly likely” the world would soon shift away from freely floating exchange rates. Governments would instead adopt a system of “broad target zones”, promising to stop their currencies wandering too far above or below a fixed exchange rate.
This article appeared in the Finance & economics section of the print edition under the headline “China gives up the fight”
Finance & economics October 8th 2022
From the October 8th 2022 edition
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