module 5 - Follow market expection Stop manipulate As...

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Follow market expection Stop manipulate As professor stated, and according to the article “China Yuan Undervalued by 20% Versus Dollar, Peterson Institute Study says”, china Yuan is undervalued. peterson-institute-study-says.html And this China’s Currency Policy gives it a Distinct Advantage. China’s currency policies have long been a problem for the United States. Cheap Chinese goods and cheap credit fueled a consumption binge for U.S. consumers and a massive trade deficit. Look, it’s no secret that China has the most undervalued currency in the world. In fact, the Chinese yuan would have to appreciate more than 40 percent against the U.S. dollar to bring the exchange rate in line with economic fundamentals. Most economists believe that if China's currency were allowed to trade freely, it would be worth more. No one can know for sure how much more,
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This note was uploaded on 10/20/2011 for the course FIN 500 taught by Professor Yi during the Spring '10 term at CSU Dominguez Hills.

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