© 2020, Farok J. Contractor, Rutgers Business School In many dozens of emerging nations, perhaps as many as sixty of them, the government interferes in the foreign exchange market to prevent, or delay, the devaluation of its currency. Featured Image Credit: ngcoin.com A recent article from the Financial Times (FT) about Argentina’s peso is yet another illustration … Continue reading Argentina Seems Headed for Another Currency Crisis (and Perhaps Default)
SEE UPDATED POST, AUGUST 11, 2019: Trump Administration Labels China a “Currency Manipulator”: What’s behind the accusation, and who’s right? © 2016 Prof. Farok J. Contractor, Rutgers Business School This article is a 2016 update of my original post of November 16, 2015. It has also been published on The Conversation as Does China manipulate its currency … Continue reading Update: Is China a “currency manipulator”? Donald Trump says so
© 2015 Prof. Farok J. Contractor, Rutgers University Governor of the People’s Bank of China (China’s central bank) since 2002 and a cautious and methodical bureaucrat, Zhou is the essence of his country’s Mandarin class: canny and understated, but relentless in his objective to elevate China’s economy and currency to elite status. Under Zhou’s watch, China’s exports … Continue reading IMF Elevates Yuan to Elite Currency Status: So what?
© 2015 Prof. Farok J. Contractor, Rutgers University After 20 years, the Chinese government must be used to it—being bashed by US politicians and Congress as a “currency manipulator.” Indeed, the exchange value of the yuan (or renminbi [RMB]) is fixed each morning by its central bank, the People’s Bank of China (PBoC), with a … Continue reading Is China a “currency manipulator”? Donald Trump says so
© 2015 Prof. Farok J. Contractor, Rutgers University American companies state that their secrets are being stolen by Chinese hackers. US counter-intelligence says it has traced several of these attacks back to outfits sponsored by the People’s Liberation Army (PLA), and that designs stolen from American companies’ computers have shown up—sometimes barely disguised—in Chinese companies’ … Continue reading Chinese Cyber-Espionage on US Companies: The Asymmetry in the Analogy of the “Pot Calling the Kettle Black”
© 2015 Prof. Farok J. Contractor, Rutgers University Permission to Reproduce: A version of this post was published as “The Chinese prefer investing overseas; dummy companies may ease transfers and devalue renminbi” by YaleGlobal Online, September 10, 2015; it was the number-one story in a Google search for “China FDI” that day and is also available as a podcast. The global panic … Continue reading Capital Outflows from China and the Hidden Story in China’s FDI Statistics
© 2015 Prof. Farok J. Contractor, Rutgers University The business press has been excitedly predicting the day when the Chinese economy will surpass that of the US in size. Just when this will happen has been a matter for debate—estimates have ranged from 2016 to 2025. In order to compare a nation’s economic size to that of … Continue reading Is China set to become the world’s largest economy in 2015?