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Devaluing the currency is great for exporting countries, but remember that China's official plan is to develop a consumer based economy. People who use a devalu
by coliveira 11y ago
Devaluing the currency is great for exporting countries, but remember that China's official plan is to develop a consumer based economy. People who use a devalued currency have no purchasing power and inflation can become a huge problem for growth.
- AznHisoka 11y agoWhy does the economy need to grow? No growth = no bubbles = no busts. Don't see everyone's obsession with growth, growth, growth.
- khuey 11y agoEver if you adjust for purchasing power parity GDP per capita in China is a fourth of that of the US. It doesn't seem unreasonable to assume that they would like a higher standard of living.
- yxhuvud 11y agoGrowth leads to better quality of life over the long term. Yes, really.
- aminorex 11y agoExploding Gini infers a trilemma: Revolution, redistribution, or growth.
- crdoconnor 11y agoIf that were actually their plan they would be strengthening their safety net. The Chinese savings glut (and lack of consumer based spending) is driven in no small part about fear of getting ill, growing old poor, etc.