Yes, but the US has always had a higher inflation rate than in Europe. The US has always chosen full employment while the EU has chosen a low...
Central banks have failed to stop the deflation, and now there are fears of a liquidity trap situation, as Paul Krugman has recently suggested....
China will never stop lending to the US. If they stop lending to the US, the dollar is very likely to plummet, and all the savings of China...
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