If China floated their currency

If China floated their currency, trade would be more balanced as we would be paying more for their goods and so we would look elsewhere. Their exports would fall along with their economy. Our prices would be higher, leaving us with less goods for more money and our economy would stall. So we are stuck. We need a slow revaluing over time so we avoid a potentially disastrous shock for both countries. But that’s off the topic.

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