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China has, at least in the past, pegged their currency to the U.S. dollar. During the fixed exchange rate time period, productivity greatly increased in
China has, at least in the past, pegged their currency to the U.S. dollar. During the fixed exchange rate time period, productivity greatly increased in China. Please explain in words, and graphically if it helps, why a peg to the U.S. dollar during this time of increased productivity led to China increasing their ownership of U.S. treasuries.
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