PALO ALTO, Calif. — Europeans are wrong to be angry with China because its currency peg to the dollar has boosted the euro against most currencies on foreign exchange markets. They should view the currency peg as a valuable gift.
In New York and other U.S. cities, European shoppers are enjoying the euro's enhanced purchasing power abroad.
The currency peg has also helped make the euro into a reserve currency rivaling the dollar. Investments from all over the world are flowing into Europe as a result.