CLEAN: Economist assesses impact of stronger yuan rates

The video discusses China's shift towards a fully floating exchange rate, indicating a temporary peg was in place for two years. This change suggests China's government is more confident in the global and domestic economic outlook, signaling a belief that the worst of the global recession may be over. While some companies may struggle with the appreciating exchange rate, policymakers prioritize macroeconomic stability. The exchange rate is viewed as a macroeconomic variable, and decisions are made with broader economic considerations in mind.

What does the speaker suggest about the timing of China's exchange rate reform?

In what ways is the exchange rate considered a macroeconomic variable?