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The article focuses on the implications of People's Bank of China's decision to lower the rate at which the yuan will trade against the US dollar, the largest devaluation in 20 years. It discusses investors' response that signalled a sharper than expected slowdown in the world's second biggest economy. Lawrence Summers, the former Australian Treasury secretary, says the risks of a deflationary, secular stagnation in the US would be increased by a large devaluation of the renminbi.

The article discusses the impact of monetary policy to the economic and financial crises in the global financial markets wherein the stocks and bonds continue to decline in the markets.