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PAUL KRUGMAN: China’s Dollar Trap

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At www.nytimes.com

the call for some magical solution to the problem of China’s excess of dollars suggests something else: that China’s leaders haven’t come to grips with the fact that the rules of the game have changed in a fundamental way. Two years ago, we lived in a world in which China could save much more than it invested and dispose of the excess savings in America. That world is gone.

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At www.nytimes.com


 

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