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Suppose the Chinese economy recovers more quickly than the US economy from our current global recession. Illustrate and describe how this asymmetric recovery across countries
Suppose the Chinese economy recovers more quickly than the US economy from our current global recession. Illustrate and describe how this asymmetric recovery across countries will impact our simultaneous equilibrium model from the perspective of the US. Be sure to highlight the changes in the rate of return on $-denominated assets, the rate of return on yuan (CNY)-denominated assets and the exchange rate ($/CNY).
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