Business Week (March 25)
2010/ 03/ 25 by jd in Global News
In the U.S. calls are increasing for China to weaken its currency. Debate hinges on whether pushing aggressively or waiting patiently is the best policy. Hong Kong business titan William Fung thinks neither strategy will work. Fung predicts China will not budge on the exchange rate because Chinese leaders do not want to repeat Japan’s mistake. What was that mistake? Allowing the yen to depreciate in 1985. Chinese officials “think the Plaza Accord was the beginning of the Lost Decade.”
