What a Stronger Chinese Yuan means for the U.S.
It has been broadly accepted that the Chinese Yuan is undervalued. However, what remains to be established is how fast the yuan should appreciate in value. One way or another, this adjustment will have global implications. A sharp rise in China’s yuan currency might cut the U.S. trade deficit by up to one-third, as well as help to create enough American jobs to put a dent in the unemployment rate. However, this sharp rise in value would also possibly result in a destabilizing spike in Chinese unemployment, which may, in turn, initiate a trade war that drags the global economy back into recession. Experts and authorities consider these and other factors in an attempt to better understand what a stronger Chinese yuan means for the U.S.
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