The threat of an invasion of Chinese products product of the Government’s actions to support its exports is aggravated by the decision of the Chinese Government on the value of the exchange rate, which considered that it should be kept stable (despite the pressure towards appreciation which suffers). These measures that the Chinese Government would adopt to support external demand affected by the impact of the crisis, along with the reduction in the Chinese imports, against the rest of the economies whose companies see that the Chinese market has been reduced and your local market can be reduced as a result of entry into game of Chinese products. Becomes clear that the efforts of the Secretary of the Treasury, Henry Paulson, to achieve that the Chinese Government appreciates its currency, they have not achieved any results. But not only China with its measures of economic policy affects the rest of the countries. Several Governments have taken steps in these times of crisis that clearly affect other economies as it has been the case of the deposit-guarantee decided by Ireland when in Europe such a possibility is not toying. You can also find cases in Latin America, as it was the decision by Argentina to limit exports of grains to Brazil to preserve under control domestic prices given the context of rising international prices. Seeing the negative consequences of the different measures taken by countries on the other, I consider of great importance the coordination of macroeconomic policies among countries. So far, the efforts made in this regard seem to be insufficient and this at the end of the crisis will be reflected in a higher cost of the same. Original author and source of the article.
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