China Go for it

China is apparently moving with extreme caution towards a modest revaluation of the renminbi. The government continues to drop hints that there will soon be a new fix some 5-10% higher than the longstanding Rmb8.3 rate. It fears the effects of a more dramatic move on the Chinese economy. But the caution may be counterproductive. The government’s economic and political logic is certainly plausible. A big revaluation would probably provoke China’s exporters to cut jobs and wages. And that could s...