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China's HUGE Trade Surpluses Mask Capital Outflows [Eurodollar University, Ep. 185]
China's 2021 trade surpluses were gigantic, so why isn't the yuan surging too? We review China's 2014-21 trade and currency experience from the perspective of the eurodollar, the international reserve currency that once intermediated trade but now intermediates capital.
------EP. 185 TOPICS------
00:00 INTRO: Capital flows drive trade, not vice versa. A review of the Chinese trade surplus.
03:39 The eurodollar created itself to finance, intermediate trade; to solve Triffin's Paradox.
06:12 The eurodollar transitioned from focusing on financing trade to intermediating finance.
09:10 The…
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