THE RENMINBI AS GAME CHANGER.docVIP

THE RENMINBI AS GAME CHANGER 　　The announcement of the Shanghai Free Trade Zone， which heralds China’s plans to liberalize the financial economy， has been seen as a welcome indication by most Western financial firms who have been pressuring China for years to allow unrestricted convertibility of its currency， the renminbi. This announcement follows a historical pattern of U.S. policy pressure on other countries’ monetary management such as when the United States pressured Japan to float its currency in 1973 after the U.S. unilaterally abandoned the gold standard in 1971. 　　A free floating cur