Response Paper 7
Should Countries Be Allowed to Manipulate Their Currencies?
First read the Controversy on pages 420 – 421 of the textbook, “Should Countries Be
Allowed to Manipulate Their Currencies?” Then write a couple of sentences responding to
each of the following questions.
1. Which groups in the United States could be harmed by an undervalued Chinese
renminbi?
2. Which groups in the United States might benefit from an undervalued Chinese renminbi?
3. Why might China have determined that supporting the value of the renminbi (rather
than keeping it low) was in its economic interest?