Europe must look east to deal with the strong euro

Commentary feature which begins 'The euro has recently hit a succession of record highs against the dollar. A number of European leaders, including Nicolas Sarkozy, the French president, have called on the US to take action to halt the trend. The issue will be high on the agenda of the upcoming group of seven leading industrialised nations and International Monetary Fund meetings in Washington. The eurozone should look to Beijing, however, if it wants to avoid the costs to its economies of a much stronger currency'.

Peterson Institute for International Economics: Hot Topics: The Chinese Exchange Rate http://www.iie.com/research/topics/hottopic.cfm?HotTopicID=3

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