Yuan Appreciation

Mitt Romney talked a fair amount about Chinese currency manipulation at his press conference today, so I think it’ll probably come up at the debate later tonight. Kash Mansoori did a good post about this last week, but the main point I do want to flag for everyone who’s interested in this is that the Chinese are in fact revaluing:

That’s the nominal exchange rate. In real terms, the yuan is appreciating faster than that because Chinese has more inflation than the United States. This doesn’t mean there’s no problem here, but it should be acknowledged that the problem is getting less serious with every passing day.