I am afraid that this study, just like most other approaches to understanding the global economic instability, simply uses the existing paradigm of exports driven growth as its mantra --- albeit with better understanding of issues such as GDP. This is not enough. Not nearly enough. We need to LET GO of the notion that exporting is the only way to growth. The other side of exporting coin is the consumption. While the producers and exporters are driven by the "race to the bottom" formula for containing cost, the consuming countries have paid for it mostly through the financial "magic". And the lubricant for exoport-driven economic growth has been CHEAP oil, allowing the shipping of cheap goods around the world, and still being able to make profit at the expense of the deep-in-debt consumers and underpaid producers. This dance is over. No formula for increasing exports to induce growth will succeed, as it is not sustainable. It can only bring more financial system strains, and even its possible collapse. Countries that banked everything on producing "services", including financial services, to buy products from producing exporters have reached a cul-de-sac, and are now circling in an ever narrower circle. In worse shape are the "pretenders". These are the countries "in transition", or weaker EU countries, that applied this neo-liberal economic model, but without the economy to neutralize the ever growing debt by the state. The model has been an illusion from the start. What is the solution? All countries need to go back to fostering domestic production on a small scale to meet local needs, and at the costs people can afford. Instead of inflating incomes, the living will have to become sustainable. So, opposite is the salvation. Produce and consume at closer proximity, as the real cost of oil will criple trans-oceanic stampede. This will be forced on us by brutal reality, as our politicians act only when kicked into acting.

If the Euro continues falling China will peg the yuan to a basket of currencies (Euro/USD)

If we assume this article to be the truth... Then I fear for us. We need to convince countries to increase consumption to get our economy going again. However that will put them in over consumption just like the US. If they are comfortable the way they are, then anything more is over consumption. It is a simple fact that the planet can not survive consumption at the level that capitalism requires to continue its growth. When we think of economics we look at its problems and ask how can we fix them. We do not ask, should we fix them? If we have a car that breaks we fix it. If that car has too many problems or is too dangerous. We scrap it and get a new one. We have had a good run with capitalism, but just like an old broken down car, it is time to give it up. There is other options, one of which is the Venus Project. A resource based economy is our best way to avoid more human suffering.

this sounds like a great plan. Everything slows down and people can catch up on learning and things like that.