President George W. Bush would do well to welcome the 9 per cent effective appreciation of the Chinese currency over the past year.

Increased flexibility in China"s currency would provide China with a greater degree of monetary policy independence from the United States than its dollar peg affords it today.

Sadly for the global economy, Chinese authorities will not change what they regard to be a highly successful exchange rate peg in the near future

A growing awareness of India's economic and strategic potential has led to serious revaluation in the United States of the India relationship.

Advocates for revaluation of China's exchange rate have argued that an appreciation would boost demand for U.S. goods and shrink the U.S. trade deficit, but Chinese currency revaluation cannot provide a quick fix to the U.S. economic predicament.

Politicians of both parties are blaming China for high U.S. jobless rates, but in truth, the impact on the U.S. economy of a change in Chinese currency policy could well be so small that it would be almost impossible to detect.

The financial crisis has highlighted the institutional features of our financial system and regulatory policies that unexpectedly resulted in financial instability.

Fashioning Chinese currency revaluation as one risks both unwelcome international consequences and failure to take helpful steps at home.