Department of Economics
Indiana University – Purdue University Fort Wayne
With China’s currency being undervalued, how does the loss of production and China’s gained comparative advantage adversely affect the US’s GDP, Inflation, and Unemployment rate? Such conditions as unfair market competition are side effects of exchange rate manipulation. Manipulation implies the direct and purposeful control or alteration of a country’s exchange rate in relation to foreign currencies.
Thomas Motter (2010).
China’s Market Effect.