Lu Mai, an influential Chinese economist, pegs the yuan's undervaluation at about 8%, not so big...

|By:, SA News Editor

Lu Mai, an influential Chinese economist, pegs the yuan's undervaluation at about 8%, not so big of a worry for the U.S. Believing Chinese inflation has more to do with rising labor costs and over-expansion of bank credit then too cheap of a currency, Mr. Lu thinks the current gradual rise in the yuan is the correct policy.