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As
confidence in the dollar subsides around
the world, the likely outcome is a gradual
fragmentation of the world currency markets:
the dollar and other major currencies
will cease to be the magnets they have
been during the era of financial liberalization.
While this outcome makes the US economy
increasingly vulnerable, it may prove
to be beneficial for developing countries
by making it easier for them to stimulate
their own internal demand.
April 27, 2004. |
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