Explain What Warning Signs Are and Are Not Contained in China's

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The Answer is For some emerging economies, an appreciating currency results from ill-conceived capital account liberalization, too much foreign borrowing (capital inflows) and a current account deficit. This does not appear to be the case for China. Rather, China's strong currency appears to reflect a fundamentally strong balance sheet and cashflow position from an international perspective. However, the longer a quasi-fixed exchange rate remains in place, the more likely other fundamental economic problems have the chance to build up without notice - setting the stage for larger and more difficult to manage problems.

Explain What Warning Signs Are and Are Not Contained in China's

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Explain What Warning Signs Are and Are Not Contained in China's

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Correct Answer:VerifiedShow Answer

Correct Answer:
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