4 ms·

If it had to, couldn’t the party trash the currency (from an international investor’s point of view) without trashing the economy?

• grandalf 16y ago
  Not without also trashing it for those in China using it as a store of value, and not without the cost of price instability being imposed upon anyone selling/buying goods with the currency during the process.
  • rtghnthyjnm 16y ago
    You can if every thing they want to buy is made in your country. The US can't half the value of the dollar to boost exports because everything in Walmart that is made in China will double in price. China can because everything it's people want to buy in GreatWall-Mart is already made in china. As long as the government steps in to subsidize imported fuel the people wouldn't notice as long as they didn't travel - and you don't want them to travel anyway.
    • gaius 16y ago
      Fuel is needed for all sorts of industrial activity too, including farming.
      • rtghnthyjnm 16y ago
        But I suspect less so in china than the US. I doubt that a major part of the Chinese diet is exotic fruit flown half way around the world out of season. China does have oil reserves and could always 'spread democracy' to some 3rd world country if it needed more.