China failure could spur global deflation: CEA
Failure of the Chinese economy could spur global deflation, competitive devaluation of currencies and plummeting real economic activity worldwide, Chief Economic Advisor (CEA) Arvind Subramanian on Thursday said. "[U]nlike in 2008, when the US dollar appreciated... the renminbi would likely depreciate should China’s economy experience a serious downturn, spreading deflation far and wide,” he said.