Instructional Video

Review of China US Currency Situation

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This Review of China US Currency Situation instructional video also includes:

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 how the Chinese government maintains the Yuan's value by increasing its supply. He also discusses the practice of investing in US treasuries, which increases the supply of money for loans in the US and decreases 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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Classroom Considerations
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