Re: A step forward

["Leigh Harkness" <Leigh@xxxxxxxxxxxxxxxxxxxx>]

Henry

If China were to float it is likely to experience the same consequences as
most other countries that have floated.  That is, initially high inflation
rates, rising unemployment, rising foreign debt and the long term rate of
economic growth declines about 40%.  Also, there is that phenomena known as
globalisation where the rate of economic growth of the traded goods sector
is faster than the growth in the rest of the economy.

This has been the outcome for most countries that have adopted the system.
Do you see any reason why it should be different for China?

Leigh





----- Original Message -----
From: "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>; <gang8@xxxxxxxxxxxxxxx>;
<TheNewForum@xxxxxxxxxxxxxxx>
Sent: Friday, March 29, 2002 11:21 AM
Subject: A step forward


> 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.
>
> Henry C.K. Liu
>
>
>

----- Original Message -----
From: "Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>; <gang8@xxxxxxxxxxxxxxx>;
<TheNewForum@xxxxxxxxxxxxxxx>
Sent: Friday, March 29, 2002 10:21 AM
Subject: A step forward


> 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.
>
> Henry C.K. Liu
>
>
>