This has caused sharp divisions between the U.S. / world opinion and China, as a number of different countries believe that the current policy gives the yuan an unfair advantage on world markets.
As a result, fears are running high that a potential currency war could take place between the U.S. And China on an economic front. This is a similar situation that occurred during the Suez Crisis of 1956, as Britain was facing declining influence in the world. At which point, they would become involved in a military conflict (over the Suez Canal). While no military conflict will occur in this situation, the U.S. is facing similar challenges with China when it comes to the yuan (which increases the possibility of a currency war).
Since China, has been slow to respond to the changes, the U.S. has engaged in a policy of weakening the dollar to prevent spiraling deflation. This is problematic, because it is creating differences of opinions about the issue surrounding the yuan. As some countries (such as the EU) feel that this is causing the world is experiencing increased amount of inflation. Where, the obvious differences in how to tackle this underling problem are becoming more apparent.
Conclusion
Clearly, a possible trade war could be emerging between the U.S. And China. This is because the differences of opinions, on how to quickly revalue the yuan are leading to calls for more aggressive action. Where, the U.S. is struggling with: a large trade deficit and a stagnant economy, which are leading to a loss of economic opportunity. As a result, a shift has occurred, with the U.S. government...
This is troubling, because these two different viewpoints increase the odds that some kind of: currency or trade war will take place in the future. Body The Motivations behind China's Currency Policy The original reasons why China had their currency pegged against the dollar is: that it provided stability and it allowed the country to sell low cost imports in markets where there was a large amount of consumers (i.e. The United
U.S. In the Interwar Years: A Nation to Blame The historical issue this paper will address is the role of the United States in the interwar period of the 1920s and 1930s. Some claim that the U.S. attempted to exert a positive influence on global affairs during this period, pointing out that Wilson's rhetoric included talk of disarmament and free trade, and that Roosevelt issued similar terms on the world
U.S. Approach to Terrorism U.S Approach to Terrorism Post 2001 The incidence of September 11, 2001 led to an anti-terrorism campaign by the government of U.S. And was called the war or terror. Since 2001, U.S. government has taken several steps to maintain security and counter terrorism by implementing certain strategies at national and international level. These approaches and steps, whether useful or not have been discussed in this paper. President Bush's Justifications
U.S. History Midterm Exam Essay questions, two (2) questions, 10 pts. each, for total of 20 pts. Answer everything in bold! Reflecting back on Units 1 through 11, describe America's incredible industrialization and urbanization from 1865 to 1945. What were the key elements of this change and what were the costs of such rapid industrialization (i.e. environmental and human costs and the Great Depression)? How did activists and politicians respond to these
8 billion. The Occupation authorities also helped the Japanese government overcome postwar economic chaos, especially rampant inflation, by balancing the government budget, raising taxes and imposing price and wage freezes, and resuming limited foreign trade" (Kesselman et al., 203). The U.S. aid not only helped to rebuild the country, but also ensured that Japan was stable enough so that renegade seedlings of Communism or comparable institutions didn't suddenly flourish. The
U.S. Macro economy economy which was considered to be the world's largest has still not been able to recover completely from the financial crisis and resulting recession that hit in 2008. At the national level, spending increase to more than 25% of GDP in 2010, later in 2011 gross public debt exceeded 100% of GDP. The process of recovery for U.S. economy in the first quarter turned out to be weaker
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now