Politicians often yell about currency manipulation in an attempt to prove their toughness on foreign policy. They tend to criticise currency manipulation in campaign speeches, congressional committee meetings and debates to prove to constituents that they will be tough on countries trying to cheat the free market. All too often they seem underinformed about the subject.
In recent years, a substantial amount of political rhetoric in the United States has been aimed at addressing the “problem” of China’s currency manipulation. The media has given particular prominence to China’s currency manipulation, which began concurrently with China’s admission to the WTO.
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