Instructional Video

Review of China-US Currency Situation

This short clip is essentially just a review of what Sal has discussed in previous videos about the China-US trade situation. He goes over all the details, discussing the trade imbalance and the way the Chinese government keeps the Yuan from appreciating by increasing its supply. He also discusses the practice of investing in US treasuries, increasing the supply of money for loans in the US and decreasing interest rates. Ask scholars what they think of Sal's last point about spending more because debt is cheaper. Does this mean they would spend more?

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