3 ms·
1.) yuan devaluation -> (accelerating capital flight + Chinese companies needing to pay more on their dollar denominated debt (more defaults) + decreasing reser
by sharetea 11y ago
1.) yuan devaluation -> (accelerating capital flight + Chinese companies needing to pay more on their dollar denominated debt (more defaults) + decreasing reserves + declining stock market/RE/assets held in yuan) >>> increased export
2.) yuan devaluation -> increased export + more money for business owners (whose money leaves China) + less money for Chinese workers/consumers + no social safety net -> spending is stagnant