Ben Bernanke on China’s Currency

By December 16, 2006General

Sorry for the delay in posting this, but yesterday was the NAM Employee Holiday Party and truth is, we got so busy whacking away at the piñata that we never got around to posting on things like the China trip by all those high-level Administration officials. But hey — what’s more important, the global economy or a little fruitcake? Not even close.

In any event, Fed Chairman Ben Bernanke was in China on Friday and had this to say about China’s currency:

“The effectiveness of monetary policy would also be enhanced by greater flexibility in the exchange rate. ..Further appreciation of the RMB, combined with a wider trading band and with the ultimate goal of a market-determined exchange rate, would allow an effective and independent monetary policy and thereby help to enhance China’s future growth and stability.”

It’s well-known that we believe currencies should be set by the market, not by individual governments. We have expended considerable effort working with any number of policy-makers in Washington to get the Chinese to let their currency float. Indeed, we have been at the forefront of all such efforts. It was good to see someone of Ben Bernanke’s intellectual heft and stature make these remarks.

Here’s a link to his full speech.