Wrong reason

Now China is bashing hedge funds too. Senior central bank officials say they are moving slowly on currency reform because they fear a speculative hedge fund attack on the renminbi. Then they worry that this would lead to a repeat of the 1997 Asian financial crisis. This is a piece of scapegoating. There may be many good reasons for China to move cautiously with currency reform. But hedge funds are not one of them. They couldn’t cause a Chinese crisis now, just as they didn’t cause the Asian cris...