Krugman on China

I don't want to turn this blog into some kind of pro-China rant but I keep reading so many occidentcentric articles that just fail to see things in any kind of balanced way. Krugman says that China should revalue the Yuan. In the long-term I agree, as the Chinese currency is clearly undervalued. And China was doing exactly that prior to the Global Financial Crisis when they halted abruptly:



The last thing that China wanted to do in a recession was to revalue the RMB further which would put pressure on employment in the export sector in China, the sector that was already hard hit in the crisis. Why should China sacrifice Chinese jobs to save American ones? Of course, if China does not recommence revaluation once the GFC is well and truly over I'll join in the criticism.