Re: A step forward

["Kazuhiro Kurose" <kurose@xxxxxxxxxxxxxxxxxxxxxx>]

> Chinese Central bank chief Dai Xianglong yesterday said he
would
> "seriously consider" an International Monetary Fund
proposal to ditch
> the yuan link to the United States dollar in favour of a
link to a
> basket of currencies.
>
> Full convertibility and free float next.

In FT's web site on March 28, I found the article that China
and Japan signed a yen-yuan swap agreement. What kind of
attitude China takes toward US as well as Asia is the very
critical to the world political economy in both political
and economic sense. China signed the agreement, as said in
the article, even though her capital account is not
convertible, which means that the yuan is not vulnerable to
speculative currency attacks. What is the implication on
these facts??

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  Kazuhiro Kurose
  Graduate School of Economics and Business
  Administration, Hokkaido University
  Kita 9 Nishi 7, Kita-Ku, Sapporo, Japan
  060-0809
    TEL: +81-11-716-2111 ex:2786
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