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| Every country in the world is trying to weaken their currency to gain a bit of competitive advantage over their trading partners. In the US, Fed is aiming a 3% annual inflation rate. In Japan, they were aiming for 5% inflation. However, they met a very strong opposition from the pensioners who were living on a fixed small amount of pension. Inflation will eat them alive. US was taking advantage of that situation and asked Japan to deflate Japanese Yuan. Taiwan is no different from Japan in facing deflationary pressure from abroad. Small amount of inflation is necessary for the industrial health. ... |
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