The People’s Bank of China (PBOC) surprised currency markets last week when it devalued the renminbi by 1.9%. The PBOC indicated the devaluation would be a one-off but in the offshore currency markets, where the renminbi is floating, the currency slid. Markets feared the devaluation was an indication the Chinese government thought the economy was might be doing worse than what was currently expected. Global equity markets reacted by falling...