Heterodox
The way China kept down the value of its currency was buy buying up government bonds with the dollars it acquired instead of just selling them in the open market. If China now decides to sell these bonds, it should mean that its currency will rise, thereby reducing the U.S. trade deficit. It's hard to see what the problem is here. Well, one (pseudo) problem I can see here is that many in the US will freak out because the yuan is getting stronger than the dollar. If the strength of the...
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