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COMMENTARY

The yuan and market-media mass hysteria

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A WEEK OF HYSTERICS: The overreaction to the devaluation of the yuan has been a case of "blame China first, don't let a good theory be ruined by fact". As former Goldman Sachs Asia vice-president Kenneth Courtis put it, it was an ignorant and hysterical reaction.

RARELY has a reaction been so disproportionate in relation to the precipitating event as the response by markets and much of the international media to China's modest devaluation of the yuan this week. It has verged, as one seasoned investment banker put it, on the hysterical.

Foreign-