Sublime

This is almost total nonsense. The only possible way it could be true is if the amount of intervention in the renminbi was unaffected by the price level, and this is certainly not the case. If it were, the People’s Bank of China should anyway immediately raise the value of the renminbi substantially in order to improve its terms of trade at no cost

In this case, however, the liabilities generated by the inflows are not associated with an increase in domestic asset growth, and so foreign obligations rise at an unsustainable pace.

Relatively high interest rates in Australia and Canada resulted in high-yield currencies that attracted foreign capital. Their relatively high interest rates were due largely to rising commodity prices.

Another device used to tilt the playing field in favor of a country’s exports and to penalize imports is currency manipulation. Steps by a government’s central bank (which controls the amount of money in circulation and the costs of borrowing through interest rates) to decrease the relative value of its currency against the value of the currencies