1. Why was China defending its currency from a BOP(+) position in 1997-2005 and from a BOP(-) position in 2015? ( Be sure include a description of China's exchange rate policy and development strategy in the two different eras and why Chia changed these polices. What hass been the role if the IMF in this policy change?)
2. The War Street Journal reported that the number of labor strikes in China in 2015 was double the number from 2014. Exlpain how and why this is related to you answer in part one.
3. Since 2015, what has the PBoC ( China's central bank) had to do to stop RMB depreciation? Explain the likely effects of the PBoC's defense of the RMB on the Chinese economy with and without sterilization.