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These brief essays delve into the economic issues of the day for a generally informed readership.

2011, No. 5 (Posted 2011-02-23)

The Difference Between Currency Manipulation and Monetary Policy

by Christopher J. Neely

But because this [Chinese] exchange rate policy is externally focused and relies heavily on regulations, which restrain normal market forces, it is reasonable to say that the policy constitutes currency manipulation for purposes of gaining an advantage in trade.

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