To date China can, through financial repression - state regulation, which undermines market mechanisms in the financial system - sustain the costs of an undervalued currency. However, by adhering to these financial policies, China’s economy may soon endure the resulting backlash: low level interest rates, which drive excessive credit demand, a weak domestic demand and therefore a large dependence
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The Euro is not yet ten years old, but its success to date has been unquestionable. ++ Despite numerous exogenous shocks - ranging from the specter of terrorism to the subprime mortgage meltdown in the US - the Euro is still going strong. ++ Without a single currency, member states of the European Monetary Union would likely be experiencing the capital exploitation and speculation seen in the
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