Renowned U. S. economist, John Rutledge, who helped frame the fiscal policies of two former U. S. presidents, warned that an abrupt rise in China’ s currency could lead to another Asian financial crisis. The founder of Rutledge Capital told the media that if the yuan rises (1) it would discourage foreign direct investment in China while (2) by market speculators. Currency change is more difficult for investors and (3) .
The Chinese currency has appreciated by (4) since July 2005 when the country allowed the yuan to (5) within a daily band of 0.3 percent. The analysts are expecting the currency to rise (6) by the end of this year. But if the yuan rose 20 to 30 percent, as some U. S. politicians are demanding, it would (7) causing a recession and deflation. Similar advice to allow an abrupt appreciation of a currency led to (8) in 1997, and came very close to destroying (9) . The U. S. economist says that investors want foremost to (10) associated with large fluctuations in currency and inflation. They (11) after evaluating risks to benefits such as (12) . A rising yuan would drive up labor costs for foreign investors and would not (13) .
Earlier reports said that currency speculators had pumped (14) U.S. dollars into China by the end of last year, with another 70 billion U. S. dollars (15) in the first three months of this year. There is no way to (16) of this type of investment and many economists disagree that (17) is so high. Instead of further appreciating its currency, China should make the yuan (18) . If the yuan were more easily converted into foreign currencies it would allow Chinese companies to expand overseas, (19) , and provide management experience and capital that China needs. It would also (20) and reduce speculative money coming into the country.
Renowned U. S. economist, John Rutledge, who helped frame the fiscal policies of two former U. S. presidents, warned that an abrupt rise in China’ s currency could lead to another Asian financial crisis. The founder of Rutledge Capital told the media that if the yuan rises (1) it would discourage foreign direct investment in China while (2) by market speculators. Currency change is more difficult for investors and (3) .
The Chinese currency has appreciated by (4) since July 2005 when the country allowed the yuan to (5) within a daily band of 0.3 percent. The analysts are expecting the currency to rise (6) by the end of this year. But if the yuan rose 20 to 30 percent, as some U. S. politicians are demanding, it would (7) causing a recession and deflation. Similar advice to allow an abrupt appreciation of a currency led to (8) in 1997, and came very close to destroying (9) . The U. S. economist says that investors want foremost to (10) associated with large fluctuations in currency and inflation. They (11) after evaluating risks to benefits such as (12) . A rising yuan would drive up labor costs for foreign investors and would not (13) .
Earlier reports said that currency speculators had pumped (14) U.S. dollars into China by the end of last year, with another 70 billion U. S. dollars (15) in the first three months of this year. There is no way to (16) of this type of investment and many economists disagree that (17) is so high. Instead of further appreciating its currency, China should make the yuan (18) . If the yuan were more easily converted into foreign currencies it would allow Chinese companies to expand overseas, (19) , and provide management experience and capital that China needs. It would also (20) and reduce speculative money coming into the country.
参考答案：too fast and too high
解析： 1-20
Renowned U.S. economist, John Rutledge, who helped frame the fiscal policies of two former U.S. presidents, warned that an abrupt rise in China’ s currency could lead to another Asian financial crisis. The founder of Rutledge Capital told the media that if the yuan rises too fast and too high it would discourage foreign direct investment in China while encouraging currency manipulation by market speculators. Currency change is more difficult for investors and more exciting for speculators.
The Chinese currency has appreciated by more than five percent since July 2005 when the country allowed the yuan to float against the U. S. dollar within a daily band of 0.3 percent. The analysts are expecting the currency to rise another four percent by the end of this year. But if the yuan rose 20 to 30 percent, as some U. S. politicians are demanding, it would jeopardize the Chinese economy causing a recession and deflation. Similar advice to allow an abrupt appreciation of a currency led to the Asian financial crisis in 1997, and came very close to destroying the Japanese economy. The U. S. economist says that investors want foremost to avoid risks associated with large fluctuations in currency and inflation. They calculate returns on their investment after evaluating risks to benefits such as lower labor cost. A rising yuan would drive up labor costs for foreign investors and would not result in higher wages for workers.
Earlier reports said that currency speculators had pumped 200 billion U. S. dollars into China by the end of last year, with another 70 billion U. S. dollars flowing into the economy in the first three months of this year. There is no way to accurately track the flow of this type of investment and many economists disagree that the amount of speculative cash is so high. Instead of further appreciating its currency, China should make the yuan convertible to the U. S. dollar. If the yuan were more easily converted into foreign currencies it would allow Chinese companies to expand overseas, facilitate the purchase of foreign technology, and provide management experience and capital that China needs. It would also shrink forex reserves and reduce speculative money coming into the country.