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The era of low rates was brought on by the fall of the Soviet Union, as millions of people shifted out of a centrally planned economy that had no impact on global markets. As Eastern European workers and businesses embraced the rest of the world, they exerted downward pressure on wages as they adjusted to an open economy, Mr. Greenspan said.
3. According to Greenspan, this period of low inflation will come to an end due to the fact that China has masses of workers moving from rural, disconnected areas to cities that are firmly tied to the global economy. Eventually, the markets of Eastern Europe and China will be fully competitive...
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