Monetary policy, Monetary economics, Banking

Globalization had proved to be a boon for almost every economy around the world initially. Eventually however, as exchange rate movements attained prominence as a potential drawback in the field of international trade, all nations around the world showed their concern regarding the same. International trade theory establishes that lower the currency rate of exchange, higher will be the net export volume, which is actually beneficial for the economic growth of an economy. China adopted this very strategy and hence, climbed up the peak of growth post globalization, although other economies around the world have to compensate for the same. Hence China received pleas for a currency appreciation from nations around the world nevertheless, it seldom gave such an action a serious thought as it