Brad Setser: Follow the Money » Blog Archive » The problem with relying on the dollar to produce a real appreciation in China …

The problem with relying on the dollar to produce a real appreciation in China … Last fall, demand for dollars rose — in part because Americans pulled funds out of the rest of the world faster than foreigners pulled funds out of the US. The dollar soared. As the crisis abated though, demand for US financial assets fell and Americans regained their appetite for the world’s financial assets. Not...