China’s Currency: An Analysis of the Economic Issues

[Excerpt] This report provides an overview of the economic issues surrounding the current debate over China’s currency policy. It identifies the economic costs and benefits of China’s currency policy for both China and the United States, and possible implications if China were to allow its currency to significantly appreciate or to float freely. It also examines proposed legislation in the 111th Congress that seek to address China’s currency policy

Alien Registration- Labonte, Helen M. (Rumford, Oxford County)

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Magnetic Energy and Helicity Budgets in the Active-Region Solar Corona. I. Linear Force-Free Approximation

We self-consistently derive the magnetic energy and relative magnetic helicity budgets of a three-dimensional linear force-free magnetic structure rooted in a lower boundary plane. For the potential magnetic energy we derive a general expression that gives results practically equivalent to those of the magnetic Virial theorem. All magnetic energy and helicity budgets are formulated in terms of surface integrals applied to the lower boundary, thus avoiding computationally intensive three-dimensional magnetic field extrapolations. We analytically and numerically connect our derivations with classical expressions for the magnetic energy and helicity, thus presenting a so-far lacking unified treatment of the energy/helicity budgets in the constant-alpha approximation. Applying our derivations to photospheric vector magnetograms of an eruptive and a noneruptive solar active regions, we find that the most profound quantitative difference between these regions lies in the estimated free magnetic energy and relative magnetic helicity budgets. If this result is verified with a large number of active regions, it will advance our understanding of solar eruptive phenomena. We also find that the constant-alpha approximation gives rise to large uncertainties in the calculation of the free magnetic energy and the relative magnetic helicity. Therefore, care must be exercised when this approximation is applied to photospheric magnetic field observations. Despite its shortcomings, the constant-alpha approximation is adopted here because this study will form the basis of a comprehensive nonlinear force-free description of the energetics and helicity in the active-region solar corona, which is our ultimate objective.Comment: 44 pages, 8 figures, 2 tables. The Astrophysical Journal, in pres

China's Currency: A Summary of the Economic Issues

This report explores various aspects of the Chinese economy, including specific policies that some Members of Congress consider a form of currency manipulation, the U.S.-China economic relationship, and the state of the Chinese economy with respect to the current global economic crisis

China's Holdings of U.S. Securities: Implications for the U.S. Economy

This report examines the importance to the U.S. economy of China's investment in U.S. securities, as well as the policy implications of its holdings for both the United States and China

China's Exchange Rate Peg: Economic Issues and Options for U.S. Trade Policy

The continued rise in the U.S.-China trade imbalance and complaints from U.S. manufacturing firms and workers over the competitive challenges posed by cheap Chinese imports have led several Members to call for a more aggressive U.S. stance against certain Chinese trade policies they deem to be unfair, such as China’s policy of pegging its currency (the yuan) to the U.S. dollar. Some Members assert this policy constitutes a form of “currency manipulation” intended to give China an unfair trade advantage and is contributing to the loss of U.S. manufacturing jobs

CRS Insight

The amount of "slack" in the labor market--jobless or underemployed workers--has consequences for the appropriate stance of monetary policy, the future path of the budget deficit, and counter-cyclical spending on programs such as unemployment insurance. This report briefly examines this concept in the context of the current economy

China's Currency: Economic Issues and Options for U.S. Trade Policy

When the U.S. runs a trade deficit with the Chinese, this requires a capital inflow from China to the United States. This, in turn, lowers U.S. interest rates and increases U.S. investment spending. On the negative side, lower priced goods from China may hurt U.S. industries that compete with those products, reducing their production and employment. In addition, an undervalued yuan makes U.S. exports to China more expensive, thus reducing the level of U.S. exports to China and job opportunities for U.S. workers in those sectors. However, in the long run, trade can affect only the composition of employment, not its overall level. Thus, inducing China to appreciate its currency would likely benefit some U.S. economic sectors, but would harm others, including U.S. consumers. Several estimates of the yuan’s undervaluation are evaluated in the report

How Have Small Banks Been Affected by Financial Reform?

This report briefly summarizes a CRS analysis of major rules issued since 2010 by banking regulators pursuant to the Dodd-Frank Act

China's Currency Peg: A Summary of the Economic Issues

This report evaluates that assertion, and considers other effects China’s peg has on the U.S. economy. These include the beneficial effects on consumption, interest rates, and investment spending. Nationwide, these effects should offset job loss in the trade sector, at least in the medium term. Several bills have been introduced in the 109th Congress to address China’s currency policy, including H.R. 1216, H.R. 1498, H.R. 1575, S. 14, S. 295, S. 377, and S. 593; some would impose trade sanctions against China unless it accepted a market-based system of currency valuation