高中--学----习英语USHasLittletoTeachChinaaboutS.docx

US Has Little to Teach China about Steady Economy

There is

a second myth: that

China would

benefit

from

letting

its

exchange rate

float

freely,

letting

market

forces

set

the

price.

No

market

economy

has foresworn

intervening

in

the

exchange rate.

More to

the point,

no market

economy has foresworn

macroeconomic

interventions.

Governments

intervene

regularly

in

financial

markets,

for

instance,

setting

interest

rates.

Some market

fundamentalists

claim

that

governments should do none of this. But today, no country and few respectable

economists subscribe to these views. The question, then, is what is the best set

of interventions in the market? There is a high cost to exchange rate volatility,

and countries where governments have intervened judiciously to stabilise their