With China’s growth comfortably back where the government wishes it to be, at 7.5 per cent, the markets have reverted to their usual schizophrenia. They rejoice that the engine of growth for many Asian and Latin American countries is back on track. Simultaneously, though, they fret that growth bought by a return to easier credit policies will lead to deeper troubles in China. Fears of the disruption accompanying any slowdown have been replaced by worries of the consequences of excessive leverage.
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