In spite of much yapping by economists, especially Paul Krugman, I strongly doubt a currency repeg by China would do much (if indeed anything at all) to cure any global imbalances. As a starting point in understanding why, please consider this statement made by Michael Pettis in response to a comments on his post How will US savings rate rise if you don’t penalize consumption? “…to use a controversial example, if the US were able to force up the value of the dollar by 20% or more …

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Why Repegging the Yuan and Other Non-Free-Market Solutions to Trade Imbalances With China Will Fail