Martin Wolf on the Declaration of Trade War with China

From today's FT:

Has the time for a currency war with China arrived? The answer looks increasingly to be yes. The politics and economics of an assault on Chinese exchange rate policy are increasingly convincing. The idea is, of course, deeply disturbing. But I no longer believe there is an alternative.

We have to address four questions. Is China a “currency manipulator”? If it is, does it matter? What might China reasonably be asked to do? Finally, can other countries shift China’s policies, with limited collateral damage?

Very good analysis of the options for recourse. What a mess.

Comments

[David Wozney]

If the stated value, of "Federal" Reserve notes, declines enough with respect to copper and nickel, the 1946-2010 U.S. Mint nickels, composed of cupronickel alloy, could become somewhat rare in mass circulation.

The October 6th metal value of these nickels is "$0.0617044" or 123.4% of face value, according to the "United States Circulating Coinage Intrinsic Value Table" at Coinflation.com.