Appreciating the Gradual

By some accounts, the gridlock on the east side of Manhattan mirrored the pace of negotiations inside the United Nations this week, as China and the United States staked out opposing positions on a number of recent issues. The annual meeting of the U.N. General Assembly in New York coincided with Chinese and American interests diverging on issues including North Korea, territorial disputes in the South China Sea, and sanctions on Iran. However, it was China’s currency, the Renminbi, that took center stage in bilateral talks as President Obama reportedly devoted the majority of his meeting with China’s Prime Minister to insisting that it be allowed to further appreciate. The issue’s prominence was likely a result of political pressures stemming from the upcoming mid-term elections as Chinese imports can be seen as displacing American domestic products. In reality, China’s exchange rate may ultimately have only a moderate effect on the American economy. Download here