tag:blogger.com,1999:blog-7820485130017459619.post3055756380897432843..comments2023-10-24T01:46:47.151-07:00Comments on CynicusEconomicus: The RMB as a Reserve Currency: Breaking Habits of ThoughtUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7820485130017459619.post-82629476500549004362012-12-16T15:53:07.903-08:002012-12-16T15:53:07.903-08:00If the US$ were not a reserve currency, presumably...If the US$ were not a reserve currency, presumably fewer dollars would be bought and the price would fall. This would reduce US living standards but improve their long-term competitiveness. COnversely, a role for the RMB as a reserve currency would boost its value, and the living standards of people in China, but reduce their competitiveness and long-term rate of growth.<br />Tempting to conclude that the Chinese will err on the side of caution, at least until they are reasonably sure they can out-compete the US on skills and technology, not just price.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-1897719409807007422012-12-15T17:06:31.500-08:002012-12-15T17:06:31.500-08:00Thanks for the link. I had a (very) quick look thr...Thanks for the link. I had a (very) quick look through. The first problem I noted is that he seems to think that the disadvantages (as he sees them) mean China will not seek reserve status. However, their actions speak louder than theory. <br /><br />It is also interesting in that the question of the de facto progression to reserve status is questioned. However, he notes the argument about currencies tracking the RMB but ignores the large numbers of bi-lateral deals being made by China for trade purposes. <br /><br />As I said, a very quick read. <br /><br />CEMarkhttps://www.blogger.com/profile/14983165364072918091noreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-80578922621006641162012-12-15T16:43:10.946-08:002012-12-15T16:43:10.946-08:00Michael Pettis strongly disagrees : http://www.mp...Michael Pettis strongly disagrees : http://www.mpettis.com/2012/11/17/is-there-an-asian-rmb-bloc/<br /><br />"anyone who follows the Chinese financial system closely knows that China is decades away from having the kind of financial system that is consistent with important – let alone dominant – reserve status."chaingangcharliehttps://www.blogger.com/profile/04803774361542678154noreply@blogger.com