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Depegging only hurts if it drops as a result. Since the effect of the basket peg is to discount the RMB¥, unpegging would seem likely to increase its US$ or value.
Depends. If they de-peg because domestic inflation has turned their previously undervalued peg into an overvalued peg, you might be in for a rude surprise.
- Jake Friends come and go. Enemies accumulate.
if you mean, maybe they'll have runaway inflation and negative real interest rates ~ well, yeah, but since us$ is from an economy actively pursuing deindustrialization and the development of underdevelopment, the us$ risk of runaway inflation is more severe. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
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