Chinese Deflation

NPR's Vicki O'Hara reports that China is trying to deal with a stubborn deflation that some economists say has caused recession in the region. China has said repeatedly it would not devalue the yuan and has launched a state spending spree on infrastructure to compensate for flagging exports and weak consumption. But economists believe there will be a devaluation in the first quarter of next year because of the disparity in the Chinese economy.

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