What are the benefits and the costs of keeping the chinese

Reference no: EM133504041

Question: In class, we discussed the Impossible Trinity Model. What are the benefits and the costs of keeping the Chinese currency, the yuan, stable when market conditions suggest it should rise against the USD or a broader basket of currencies such as the CFETS Index? On the monetary policy side, how has this impacted the Chinese consumer during the Covid-19 Pandemic? Is this stable exchange rate policy justified as China is a member of the IMF Reserve Currencies since 2016?

Reference no: EM133504041

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