Clinton Encourages China to Keep the Yuan Undervalued

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That's the word according to AP. According to the article, Clinton encouraged the Chinese government to keep buying U.S. Treasury bonds. This is the mechanism through which the Chinese government keeps down the value of the currency or "manipulates" its currency, in the words of some commentators. Buying U.S. government bonds keeps up the value of the dollar and depresses the value of China's currency.

--Dean Baker

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