Debt Loops Rationale and Effects

Curated and Reviewed by Lesson Planet

Now that scholars understand more of currency imbalance and artificially suppressed currency, Sal discusses motivations of the different actors. He briefly touches on the difficulty of unwinding a cycle like this once it has begun. Learners see the Chinese perspective, looking historically back at the big-picture goal of being on-par industrially with the developed world. They examine the impact of an offshore manufacturing base, both on the US and China. Sal also brings up the US point of view and outlines the economic problems that will ensue if this cycle were to stop. He sets up a brief parallel to the recent recession, so consider challenging scholars to think more deeply on that connection.

3 Views 0 Downloads

Concepts

deflation, inflation, interest, the national debt, currency exchange

Show More Show Less

Additional Tags