Don’t give it currency (with Jagdish Bhagwati)

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Abstract: India has joined the US in "China bashing", calling upon the latter to revalue its currency. According to the Financial Times (April 22, 2010), India's Reserve Bank governor spoke ahead of a meeting of finance ministers and heads of central banks of the G20 in Washington, joining with Brazil, to make a forceful case for a stronger renminbi (also called yuan). This is a mistake.
For some time now, the US Congress and some Washington think tanks have aggressively sought to turn the bilateral exchange rate issue between the US and China into a multilateral issue. They have done this by asserting that the undervaluation of the Chinese currency hurts not just the US but Asia and others as well.