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: We assess links between China and the rest of emerging Asia. Some commentators haveargued that China's apparent devaluation in 1994 may have contributed to the Asian financial crisis. Weargue that the devaluation was not economically important: The more-relevant exchange rate was afloating rate that was not devalued, and high Chinese inflation has led to a very sharp real appreciationof the currency. Although in principle, export competition with China could nevertheless have placed...

Was China the First Domino?: Assessing Links Between China and the Rest of Emerging Asia