I don't understand
why people think that NPR is the most boring thing on the air. Every time I hear something related to economics, I want to reach through the radio and strangle the writers and presenters.
Here's a prime example from this morning, complaining of "currency manipulation" by China.
Basically, the accusation is that China's central bank simply prints more yuan when Chinese manufacturers bring dollars from their customers for exchange, rather than allowing the value of the renminbi rise due to increased demand. (Well, at least they understand the concept of supply and demand determining price, something often overlooked in NPR economics articles)
They completely ignore that the currency manipulation above is exactly what the Federal Reserve does when they talk about an "accommodative" monetary policy or maintaining a target interest rate. The way the Fed keeps a low interest rate is by creating dollars if there is increased demand for loans. It's exactly the same process, just using a different metric.
All fiat money is manipulated. To pick out China's central bank is just trying to avoid facing our own economic problems.
Here's a prime example from this morning, complaining of "currency manipulation" by China.
Basically, the accusation is that China's central bank simply prints more yuan when Chinese manufacturers bring dollars from their customers for exchange, rather than allowing the value of the renminbi rise due to increased demand. (Well, at least they understand the concept of supply and demand determining price, something often overlooked in NPR economics articles)
They completely ignore that the currency manipulation above is exactly what the Federal Reserve does when they talk about an "accommodative" monetary policy or maintaining a target interest rate. The way the Fed keeps a low interest rate is by creating dollars if there is increased demand for loans. It's exactly the same process, just using a different metric.
All fiat money is manipulated. To pick out China's central bank is just trying to avoid facing our own economic problems.