Strategic Studies Quarterly
Several large near-peer competitors, such as Russia and China, have amassed large levels of dollar-denominated foreign exchange reserves. This raises concern that these states could deliberately sell off assets to harm the dollar’s value. Currency attacks have historically been a part of warfare, and the recent advent of nation-states that have large reserves suggests it is possible the United States could face this threat. Contemporary public discussion has often lacked depth and been at one of two extremes: either (1) China could destroy the United States if it chose to sell off its treasuries, or (2) the Chinese would lose so much they would never undertake a currency attack. This article takes a detailed look at China’s economy to determine the plausibility of a currency attack against the United States.
Haymond, Jeffrey E., "Living in Interesting Times: The Economics of a Chinese Currency Attack" (2008). Business Administration Faculty Publications. 17.