Devaluation idea loaded with pitfalls

Such devaluations have happened in the past. Many economists have partly attributed China's export boom to its decision in 1993 to drop the relatively overvalued yuan by as much as 30 percent -- a decision which played havoc with the exports of Southeast Asian economies, including Taiwan's.

But with the NT dollar being relatively fairly valued, generally determined by market forces, resorting to such a drastic measure flies in the face of rationality.