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?

Concepts

---

trade imbalance, trade, appreciation, deflation, depreciation, exports, imports, inflation, supply and demand, the people's bank of china, currency exchange

Show More Show Less

Additional Tags

trade imbalance, currency exchange, chinese central bank, people's bank of china, export, import, inflation, deflation, appreciate, depreciate, supply and demand, treasury bond, treasury note, treasury bill, us treasury, social studies

Show More Show Less

Resource Details

Grade

11th - Higher Ed

Subjects

Social Studies & History

1 more...

Resource Type

Instructional Videos

Media Length

2:36

Audiences

For Teacher Use

1 more...

Instructional Strategy

Flipped Classroom

Accessibility

Closed Captions

Usage Permissions

Creative Commons

BY-NC-SA: 3.0