tag:blogger.com,1999:blog-2938311055760665357.post3764182576663937958..comments2024-03-27T03:49:12.592-07:00Comments on Ed Dolan's Econ Blog: Appreciation of the Yuan: Good for the US, Good for China, TooEd Dolanhttp://www.blogger.com/profile/08757995049056872214noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2938311055760665357.post-20326732565026041412010-10-14T11:12:05.593-07:002010-10-14T11:12:05.593-07:00I'm working on a new post on this, it will be ...I'm working on a new post on this, it will be up in a few days when I finish a couple other things. <br /><br />Meanwhile, to try to answer your question: If the Chinese central bank (PBoC) buys dollars to add to its reserves, the dollars are, I suppose, "out of circulation," if you want to think of it that way. But the PBoC pays for the dollars with newly created yuan, and those yuan go into circulation in China. It is the new yuan sold, not the dollars bought, that create the inflationary pressure.Ed Dolanhttps://www.blogger.com/profile/08757995049056872214noreply@blogger.comtag:blogger.com,1999:blog-2938311055760665357.post-36096725251543184722010-10-14T08:42:57.965-07:002010-10-14T08:42:57.965-07:00Hi Ed,
It would be great if you could give us a s...Hi Ed,<br /><br />It would be great if you could give us a status update on China and their propping up of the Dollar.<br /><br />My question also is: Money used to purchase foreign currency is out of circulation (i.e. held by other countries) is it not? Are there really inflationary pressures involved?Anonymousnoreply@blogger.com