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Impact of the sale of US treasury securities to China

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We are focusing on how governments (via central banks) impact economies around the world when they engage in buying and selling foreign securities. One area of interest is how the US is influenced by actions taken by central banks in Asia and Europe. We think the best way to address this topic is to use an example of how the People's Bank of China (China's central bank) would impact the US if it was to purchase US$50 billion in US Treasury securities.

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This solution is comprised of a detailed explanation of the impact of the sale of US Treasury securities to People's Bank of China of more than 100 words of text.

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If the People's Bank of China purchases US$50 billion in US treasury securities, then the Treasury Department of the US would be able to keep low long-term interest rates. Since US Treasury ...

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