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Read the attached three articles on devaluations/depreciations of China’s currency, Yuan, that started from August 11, 2015.
Discuss the following questions:
- What do you think were the driving forces of the devaluations/depreciations of Yuan (against US dollars)
- Search online and describe what happened to China’s stock markets during that period, especially in January 2016. (Information not provided in the three articles.) What do you think of the relation between the Yuan value changes and China’s stock market movements?
- What were the global impacts of the depreciation? If you prefer, feel free to pick a country or a region to discuss the impacts.
- If you were a U.S. policy maker, how would you react to the China’s move?
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