Eichengreen–China’s Exchange-Rate Trap

NEW YORK – For months now, China’s exchange-rate policy has been roiling global financial markets. More precisely, confusion about that policy has been roiling the markets. Chinese officials have done a poor job communicating their intentions, encouraging the belief that they don’t know what they’re doing.But criticizing Chinese policy is easier than offering constructive advice. The fact is that China’s government no longer has any good options.