If China Held a Normal Amount of Reserves, Would Its Currency be Higher or Lower Against the Dollar?

That is the question millions are asking, or at least the question that people who talk about whether China's government is holding down the value of its currency should be asking. Neil Irwin is on that list.

In a NYT column today he argued that China is no longer holding down the value of the yuan to maintain a competitive advantage in trade. He pointed to their recent sale of reserves to keep the yuan from falling against the dollar and other currencies. However, however his discussion igno...