Maggie O’Connor

IL 300
1/26/11

Comparative Analysis of Two Relevant Sources

Two pieces which pertain to the topic of currency devaluation, and its impact on

the Chinese economy come from the New York Times, and the American Association of

Geographers. While one comes from a very recent periodical written by a single

journalist, the other comes from an American journal containing the compiled efforts of

many scientists. The two works differ greatly in their construction, length, depth, theory,

and historical context.

The article entitled “Currency Devaluation and Resource Transfer from the South

to North” by Mohameden Ould-Mey is a comprehensive work which introduces the

concept of currency devaluation, its impacts on modern economies, and the reasoning

behind its practice. It begins by telling the reader what the article consists of, and

breaking down its intent and objectives. Ould-Mey considers the existence of worldwide

poverty, and the income gap between the richest and poorest global citizens. He gives

several philosophers’ and authors’ opinions on the foundations of inequality and

development, each stemming from different eras in history facing distinct individual

challenges. He aims to tie all of these findings into the current political and economic

climate (of 2003, the year of publication) and inform the reader how these concepts

relate to currency manipulation.

Ould-Mey also considers modern historical events, including the legacy of the

Cold War, combined with the founding of institutions like the IMF and the World Bank.
He adds these events to the exploration of devaluing currency, and gives the reader a

full sense of its impact on a global scale. He gives what he calls an “empirical

evaluation: cross-country analyses” of different regions, which includes numerous

charts and graphs summarizing data in relation to currency devaluation. A specific case

that he delves into is the case of Mauritania, and the progress that the country has

made in recent years in regard to growth, decreases in inflation, and the move towards

a more free market economy.

After the historical, theoretical, economic and political foundations of currency

devaluation, Ould-Mey proceeds to give a lengthy conclusion, followed by a list of

acknowledgements, and dozens of references. In comparison to this journal article, the

New York Times article by Mark Wu entitled “ China’s Currency Isn’t Our Problem” is a

far shorter, less comprehensive, and opinion based piece. He begins by discussing Hu

Jintao’s 2011 visit to the United States, and what Americans should be focusing on

instead of currency devaluation; issues such as North Korea, Iran, and bilateral trade.

He also aims to clear the misconception of cheap Chinese currency leading to the loss

of American jobs, and gives three other explanations for the variations in both countries’

export/import sectors. Wu’s piece focuses on facts, misconceptions, and very current

information, while Ould-Mey’s offers a “crash course” in economics through the

historical lens of currency manipulation.