Comments: So What Happens if ...

It will all work out for the better after some inevitable short term issues. The whole basis for economics is that supply and demand leads to adjustments and changing prices in order to clear the market and keep it in balance. When the medium for the exchange is artificially regulated, as is the yuan, the whole fundamental basis for rational economic trade is missing. That may be tolerable for a small, poor nation, but you can't have that with an economy the size of China's today.

Posted by Swammi in Solon at May 23, 2005 08:23 AM