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Living In Interesting Times: The Economics Of A Chinese Currency Attack, Jeffrey E. Haymond

Business Administration Faculty Publications

Several large near-peer competitors, such as Russia and China, have amassed large levels of dollar-denominated foreign exchange reserves. This raises concern that these states could deliberately sell off assets to harm the dollar’s value. Currency attacks have historically been a part of warfare, and the recent advent of nation-states that have large reserves suggests it is possible the United States could face this threat. Contemporary public discussion has often lacked depth and been at one of two extremes: either (1) China could destroy the United States if it chose to sell off its treasuries, or (2) the Chinese would lose …