
Longstanding government fiscal and monetary policies are fundamental contributors to the global imbalances that have built up, and as recently as 2008-2009, broke out and all but tore down the as yet prevailing global financial and economic order. China pegging the value of its currency, the yuan, to the US dollar has been a significant contributing factor. Despite support among economists and analysts, it’s high time for China to make the transition to a floating exchange rate system and open up its domestic markets to international investment opportunities, both coming in and going out.



