Federal Reserve Chairman Ben Bernanke made his most aggressive speech against Chinese currency manipulation, targeting countries that artificially debase their currencies for competitive advantage.But was he right to do so?The current rate of appreciation for Asian currencies (dollar-Asiaindex) is higher than it has been over the past decade. Notably, those periods of appreciation often ended with economic crisis.It is possible this basket of Asian currencies may just show steep appreciation in the Korean won, Thai baht, and Indian rupee, and not the yuan. But the steepness of the appreciation would suggest otherwise.
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