Friday, March 6, 2015

Stock Markets & China's Role



This article was really interesting because a previous article I’ve looked at for this blog talked about the stock market in Asia and Europe and how China played a really positive roll to maintaining its stability, as well as global market stability. This article talks about the so-called “currency war’’ going on in Asia and how the attention is on China and the steps that it is going to take. Inflation appears to be a growing problem in Asia, forcing countries like Indonesia to implement ‘’rate cuts.’’ It is not predicted that Chine is going to give into ‘’deflationary pressures’’ and change anything about the yuan. It can ‘’weaken’’ the yuan, but it has chosen not to. This article made me wonder if that is because they want to make sure their economy is still leading in the world economies? If they weaken their currency, it could even out the playing field a little more.

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