Abstract

This paper focuses on the synthesizing of literature from various sources with critical analysis on the subject “The effect of currency manipulation on the global economy.” From the definition of a synthesizing the literature, this paper explores various academic scholarly resources through comprehensive research skills to ascertain the logical explanation of the subject under study. It pursues a continuation of week 4 studies developing an information-analytical comparison on various views on currency manipulation as subjected to the global economy. It will also help readers underscore the basic knowledge on an aspect of currency and how its manipulation has a significant impact on the global economy. Various authors stand on various empirical and theoretical explanations on the subject with information insight to the audience. To its conclusion, you will be able to identify the use of literature synthesis in enhancing an informative illustration of the subject under study.

Introduction

Currency manipulation

Censky, (2010), a reporter in CNN explicitly explains the subject of currency manipulation in a diverse way. According to him, currency manipulation is the act of changing the currency value against other currencies instead of leaving it free to fluctuate following the dynamics in the global market. Currency manipulation has a significant impact on the local economy. It is defined by the country’s currency value against the international standards and the exchange rate used. Katz, (2015) argues that a country that is actively involved in exports and import has higher chances of facing the economic currency exchange challenges that can prompt manipulation of currency. As outlined in the CNN reports, China is perceived to be on the forefront for currency manipulation. This is report comes because of currency valuation reports where the Chinese Yuan dropped significantly in 2016 following the US government action on the country’s export surge (Censky, 2010).