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Economy

China prints money while freezing its economy

HERE’S THE INTERESTING PART

When a country exports trillions of dollars in goods, its central bank faces a massive problem: hyperinflation. To keep the yuan artificially cheap without destroying the local economy, the People's Bank of China engages in aggressive sterilization, buying up foreign dollars while violently forcing domestic banks to lock up their cash reserves to stop the money from circulating.

China prints money while freezing its economy
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