Can U.S., China Come to Terms on Monetary Policy?

The video discusses the evolving monetary policy relationship between the US and China, emphasizing the need for better communication. It highlights market reactions to China's currency management, noting a shift from dollar-centric to a basket of currencies. The impact of Abenomics on exchange rates is explored, with a focus on the Yen-Yuan relationship. The video concludes with future strategies for Chinese currency management, considering potential dollar appreciation and Fed policy changes.

What is the primary request from the US to China regarding monetary policy?

• Reduction in tariffs

• Increased investment in US markets

• Improved communication and dialogue

• Better trade agreements

How is China currently managing its currency?

• Against the yen only

• Against the euro only

• Against a basket of currencies

• Against the dollar only

What is the impact of Abenomics on the yen-yuan exchange rate?

• It caused the yen to weaken

• It caused the yuan to strengthen

• It had no impact

• It caused a sharp leg down in the yen

What is China's strategy if the US dollar appreciates?

• To let the yuan appreciate with the dollar

• To keep the yuan stable against the dollar

• To weaken the yuan further against the dollar

• To peg the yuan to the euro

Who is mentioned as a central banker influencing global monetary policy?

• Ben Bernanke

• Christine Lagarde

• Mario Draghi

• Janet Yellen