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Ruchir Sharma, “Worried About Turkey’s Economic Problems? China’s Could Be Worse”
The author of “The Rise and Fall of Nations” argues that the fate of the world economy depends on how China negotiates a weakening currency and capital flight. This is a tough and complex dilemma. The strengthening dollar threatens to provoke more capital flight out of China, but any effort to shore up the renminbi in response could further slow the Chinese economy. If, however, it does the opposite (lowering rates), China will only give Chinese investors more reason to leave the country, further undermining confidence (reads in 5-6 min).
