"The Chinese realize they unleashed a bit of a monster," he said. "They have to constrain it."
"Given the level of interest rates is very low in China and the economy is growing now closer to 9%-10%, you need direct credit controls," said Roubini. "China decided a year ago to repeg to the U.S. dollar , therefore it had to intervene aggressively to essentially prevent the appreciation from occurring. All this intervention has only been partially sterilized. Therefore credit growth has accelerated."
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