Gripped by Delusion

In their latest analysis, Morgan Stanley's Qing Wang and Steven Zhang debunk the propaganda of China-bashers and cry babies:

• Since July 21, 2005, the renminbi has appreciated against the US dollar by slightly over 20%;

• The renminbi is the only currency among the major emerging market economies that has not depreciated against the US dollar in the 12-month period ended May 2009.

Of course, we are referring to nominal exchange rates because exporters could not care less about the statistical bunkum of real exchange rates. Both their exports and imported inputs are priced in the rates they get from foreign exchange dealers.