Vladimír Urbánek (Kurzy.cz)
Finance  |  October 05, 2010 10:24:04

Krugman: We are approaching the time when the predatory behavior of Chinese retaliation causes


Diplomacy in a dispute over Chinese currency exchange rate is going nowhere and will remain so until then, until the threat of retaliation. Upheaval that formed around the possibility of a trade war is not justified. And so are worse things than trade conflict. In times of mass unemployment, exacerbated by the predatory policy of China, the possibility of several new tariffs should be on the list of our very deep concern.

Let's look at the current situation in the world. Major developed economies are still recovering from the bursting bubble in the housing market and financial crisis that followed. Subdued consumer spending and companies are not going to invest because they do not use either the current capacity. Unemployment is extremely high and signs of a return to normal levels. In emerging economies, the situation is considerably different.Do not fight with deflation, but with inflation, and provide many investment opportunities. It is natural that capital flows from rich economies toward them.

The full report can be found on the server Patria Online, specifically HERE

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Krugman: Blížíme se k okamžiku, kdy predátorské chování Číny vyvolá odvetu

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