What nobody wants, however, is a free-falling currency. The best-case scenario is that the dollar would continue to slowly work its way lower against major currencies, and that foreign investors would neither abruptly dump U.S. securities nor suddenly stage a buyer's strike.
And as usual in discussions of the global economy, all roads go through China, the emerging economic powerhouse. China must bow to growing international pressure and allow its rigged currency to gently rise against the dollar, most economists say. That would make Chinese exports more expensive for Americans, and American exports cheaper for Chinese.