Pegging the Yuan

Sal reviews the hypothetical currency balance between China and the US given an ideal market scenario, then explains the Chinese government's motivations (both optimistic options and more cynical ones) to keep the Yuan from appreciating and intentionally misbalancing trade so China has export-led growth. How can this be done? Sal introduces the Chinese Central Bank's response to a scarcity of Yuan: printing more Yuan and exchanging it for dollars to keep the Yuan devalued. This concept leads learners into a discussion about what the Chinese government does with accumulated dollars and the effect on the US economy.

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Resource Details

Grade
11th - Higher Ed
Subjects
Social Studies & History
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Resource Types
Videos
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Audiences
For Teacher Use
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Instructional Strategy
Flipped Classroom
Accessibility
Closed Captions
Usage Permissions
Creative Commons
BY-NC-SA: 3.0
cc