How Does The Strength Or Weakness Of The Chinese Currency Affect The World Economy?
With the value of the dollar jumping up and down against other countries’ currencies, what if the world just agreed to use the same currency? It sounds like a simple idea. But like many simple ideas, it would come with all kinds of unintended consequences. Recently, Chinese leaders argued for the creation of a unified global currency, a concept that has been proposed by a number of academics and political officials in modern economic history. While the idea has certainly not received widespread support, the success of the euro demonstrates that currency unification can work and may even have certain economic benefits. What ramifications might the adoption of a universal currency have on global trade and national economies in general? — R.Z., New York The Chinese proposal for a single global currency was part of Beijing’s effort to take a more prominent place among world powers at the recent G20 meeting. And they have legitimate reason to float the idea of replacing the dollar as the “r
India and China are no longer beggar nations. They are actually world’s fastest growing economies with their citizens enjoying fastest growing expendable income. The educated middle class has joined the bandwagon of “American Dream Building with new cars, new homes and a stable family.” The robust prosperity is based on imported jobs though. And now as expected India and China will be asked to make their currency floating in the open market and remove all restrictions on foreign companies participating in their countries. No matter what happens at the trade levels, Indian and Chinese currencies will revaluate. The valuation of these currencies are estimated anywhere from 20 to 45%. No one knows when this will happen. But they are being pressured to make the change happen fast. Then what is effect on the outsourcing companies in India after the currency appreciation? Many believe that India and China will lose export-based trade and growth once the currency appreciation takes place. Thi
