I remember reading this piece by Greg Mankiw, and I wish I had thought about it last night when I commented on Krugman’s screed about the yuan. Fortunately, Mankiw linked to it today in response to requests for his thoughts on Krugman’s op-ed.

Take the time to read it. It’s chock full of things we need to keep in mind as we discuss the Chinese peg. It’s also refreshingly free of Krugman’s thinly disguised political biases.