The exchange rate remains substantially undervalued, but we have seen some important progress there to date.

WHITEHOUSE: Via Telephone

In many cases of past rebalancing, an undervalued exchange rate also led to excessive growth in money supply, making it harder to tame inflation.

ECONOMIST: Economics focus

It would be better for Western debtor countries to get their own fiscal houses in order than to attack China for an undervalued exchange rate and threaten protectionist measures that would reduce world trade and wealth.

FORBES: China's Challenge: Balancing the State and Market

Authorities have been using monetary policy instruments to cool inflation rather than adjust an exchange rate which many consider to be undervalued.

FORBES: Lujiazui Breakfast: News And Views About China Stocks (June 15)

Mr Svensson argues that the yen needs to be pushed to an undervalued level, from which the public would then expect an appreciation of the real exchange rate.

ECONOMIST: The yen