For years the popular thinking among economists was that the fastest path to development was to ship out cheaply produced goods to the industrial world, while undervaluing one's currency to make those goods even less expensive in export markets. The model worked well in the 1980s and '90s, when only a few Asian countries such as South Korea and Malaysia were playing the export field and the United States was in the midst of a consumption binge. But the export pie is finite, and cracks began to show up in the mid-'90s with the growing presence of China. The sharp devaluation of the Chinese currency in 1994 was cited as an important factor in the eventual outbreak of the region's economic crisis in 1997-98. link »
www.newsweek.com/
Note: its a bit of a bias article. Not because I think so.
Its not only Newsweek, its also a person's point of view, to remind our readers here.
No comments:
Post a Comment