No Quick Fix for Yuan

Matt Slaughter at Dartmouth has an excellent oped in WSJ, here's the bottom line:

"Put it this way: In a counter-factual world where over the past decade China allowed the yuan to float against the dollar, the U.S. would still have run a large and growing trade deficit with China. The real economic forces of comparative advantage that drive trade flows operate regardless of which nominal prices central banks choose to fix."

More here.