many problems is the overvalued dollar caused

Today, the controversy surrounding the yuan, and the 20th century, 80 cases of the United States to revalue the yen are very similar. At that time, the U.S. pressure the yen appreciation, and ultimately the appreciation of the yen against the dollar, but it did not solve the U.S. trade deficit with Japan. Because, at that time, the United States in their own country can not produce many goods have been heavily dependent on imports from Japan.

Again, today's many problems is the overvalued dollar caused. Therefore, the pressure of RMB appreciation for economic reasons is ridiculous. Objectively speaking, the appreciation of the renminbi to the U.S. trade deficit may be even greater.

"Outlook": Please talk about the specific dollar you mentioned just now overvalued issues.

Jomo: In fact, overvalued dollar has led to many of today's problems. Should let the dollar fall, rather than let the yuan appreciate. World Economic Outlook (WorldEconomicOutlook) mentioned that the International Monetary Fund on an internal report disclosed, the dollar was overvalued by 30% to 40%. Thus, the current problem is not renminbi issue is the dollar problem. Further, this also is not only dollar question, is the world's reserve currency regime. Dollar trade surplus and foreign exchange reserves of the pursuit of this that many countries feel the current system of currency reserves are safe.

"Outlook": Do you have any suggestions that China's currency policy?

Jomo: First, it should be noted that the floating of RMB exchange rate against the U.S. dollar alone (appreciation or depreciation), and the RMB exchange rate fluctuations on all global currencies are different, the two are very different. Secondly, the current China, raising the wage rate is more meaningful than raising. China should improve the level of wage income of ordinary people. Finally, perhaps, China should now be allowed to unilaterally devalued dollar, and announced that the U.S. dollar decoupling. Now, China is a global chain of production and trade key locations, and the U.S. dollar in China's long-term interests of the decoupling.