From Now On, Yuan Will Stay Close to 7, Says Moody’s Analytics’s Cochrane

The video discusses the forecast for the yuan, highlighting China's strategic move to allow the yuan to exceed seven as a signal of economic resilience and control. It emphasizes the importance of keeping the yuan close to seven to manage capital outflows and maintain economic stability. The discussion also covers the concerns of policymakers regarding yuan weakness, focusing on the risks associated with dollar-denominated debt and the rising debt-to-GDP ratio due to economic stimulus efforts.

What does the speaker imply about the future of the yuan in relation to the trade war and tariffs?

What is the significance of keeping the yuan close to 7 according to the speaker?

How does the speaker view the impact of capital flight on the yuan's value?

What are the potential risks associated with the rising dollar denominated debt in China?

What measures does the speaker suggest China is taking to manage its economy amidst the trade war?