The G20 is getting underway in South Korea. High on the agenda is the brewing currency battle between China and the United States.
Need a primer on the issues? Check out our US-Sino Currency Rap Battle, featuring Chinese president Hu Jintao and American president Barack Obama.
China has mad stacks of US Treasury debt and fears America will inflate its way out the hole by weakening the greenback further. The US, on the other hand, says China is keeping its currency artificially undervalued to protect its exports.
It's a battle for the ages.
Here's an article that starts to open up some of the issues at stake with regard to the solutions to balance of payments deficits and surpluses. It also provides an excellent basis for beginning to evaluate the potential solutions. Currency devaluations create winners and losers, who are the winners and who are the losers? It also explains how governments are trying to influence the value of currencies.
What's the currency war about?
U.S. China meet over currency at G 20 summit
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