Nobel laureate: U.S. pressure on China to revalue the yuan will result in a catastrophe

Possible adoption of the U.S. legislative measures to encourage China to strengthen the yuan, would have disastrous consequences and would not help reduce the trade deficit between the two countries, says Nobel laureate in economics Robert Mundell (Robert Mundell), which opinion lead agency Bloomberg. "It does not help Americans - Mandell said in an interview televised Bloomberg. - This will not create jobs for Americans. It's just a recipe for disaster. "

As expected, U.S. lawmakers in two days to vote for an initiative that could allow U.S. companies to apply for the introduction of import duties on Chinese goods to offset the effect of the low rate of yuan to the dollar. The Central Bank of China on June 19 this year, announced the rejection of pegging the Yuan to the dollar and increasing the flexibility of formation of the RMB exchange rate, that is, the return mechanism that existed before the global economic crisis. Nevertheless, since the adoption of this decision, the yuan has appreciated against the dollar by only 2%.

This law "cause serious damage to the world economy and stability in Asia, I'm sure the Nobel laureate. "This will affect the stability of international relations - says Mandell. - Never before in economic history has there been such that the country due to legislative initiatives in other parts of the country was forced to revalue its currency against the currency of this country "