China's Currency Unbound

After its decade-old fixed exchange rate to the U.S. dollar, China is unpegging its local currency, the Yuan, from the U.S. dollar in favor of other world currencies.

The Bush administration gave its stamp of approval but others say be careful what you ask for. From Walmart prices to the U.S. trade deficit and mortgage interest rates, the implications for the U.S. economy are plenty.

Hear a discussion on how China's varying exchange rate to the U.S. dollar will affect America's economy and American consumers.

Guests:

Greg Ip, economics reporter for the Wall Street JournalJeffrey Frankel, professor of capital formation and growth, Harvard's Kennedy School of Government. He directs the program in International Finance and Macroeconomics at the National Bureau of Economic Research. He is former member of the Council of Economic Advisers under Bill Clinton.

Morris Goldstein, senior fellow, Institute for International Economics, a Washington think tank. Former deputy director of the International Monetary Fund's Research Department and author of "Controlling Currency Mismatches in Emerging Markets."

Bob Buchanon, retailing industry group leader at the brokerage firm AG Edwards

Clyde Prestowitz, founder and president of the Economic Strategy Institute.