3 ms·
Why can't a sovereign state control their fiscal policy? Who should decide what the value of the Renminbi should be if not the PBC?
by ImHereToVote 1y ago
Why can't a sovereign state control their fiscal policy? Who should decide what the value of the Renminbi should be if not the PBC?
- cma256 1y agoThe same reason a sovereign state can't act unilaterally in any domain -- diplomacy. If your actions affect another (or even just inspire interest) then the other party may make decisions which affect your country.
- _heimdall 1y agoCurrency debasement is more monetary policy than fiscal policy I think. Either way I didn't read the GP comment as saying China can't do that, just that doing so is what gave them an edge long enough to gobble up a lot of our trade.