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Instructional Video

Pegging the Yuan, Money, Banking and Central Banks, Finance and Capital Markets

Curated and Reviewed by Lesson Planet

This Pegging the Yuan, Money, Banking and Central Banks, Finance and Capital Markets instructional video also includes:

Sal reviews the hypothetical currency balance between China and the US under an ideal market scenario, then explains the Chinese government's motivations (both optimistic and more cynical) to prevent the Yuan from appreciating and intentionally misbalancing trade, thereby maintaining export-led growth. How can this be done? Sal introduces the Chinese Central Bank's response to a scarcity of Yuan: printing more Yuan and exchanging it for dollars to keep the Yuan devalued. This concept leads learners into a discussion about what the Chinese government does with accumulated dollars and the effect on the US economy.

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Concepts

appreciation, depreciation, the people's bank of china, currency exchange

Additional Tags

dollar reserve, yuan, currency exchange, chinese central bank, depreciate, appreciate, social studies

Classroom Considerations

This video is hosted on YouTube

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