The US and others seem to believe that China’s currency is the biggest obstacle to the global recovery.
That is highly debatable, as I argued on VoxEU.
In any case, the Chinese renminbi is up 3.1% against the dollar over the past 12 months.
And since inflation is 4.4% in China and only 1.1% in the US, in real terms it is up 6.4%.
Would a faster appreciation really do more good than harm?
Economies cannot adjust painlessly overnight.