Yesterday I quoted extensively from a UBS report that argued very strongly against the likelihood of a one-off revaluation of the RMB. Much of my discussion concerned why I think that although I agree with some of the author’s points, I do not believe they are relevant to the case. I had planned to write in today’s entry about one of his arguments which was in fact relevant but with which I disagreed – that there was no evidence that hot money inflows have become a problem for monetary policy.