Currency Manipulation of the 21st Century: China and the US Now more than ever, countries feel tempted to engage in a ‘currency war’ and go back and forth trying to devalue their currency in efforts to encourage exports. The two largest economies, China and the United States, seem to be in a long, bitter trade dispute as the trade relationship is significantly imbalanced. From tariffs to currency, trade tensions are clearly escalating with both sides slapping substantial tariffs on each other’s goods. Currency manipulation (arguably the world’s most protectionist international economic policy) refers to the concept of countries artificially lowering the value of their currency to achieve an unfair competitive advantage (Forbes). The U.S. Dollar is the most popular reserve, and everyone wants a stake in our economy. Unlike many other countries, China does not ha...
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