It was once taboo to say that China could be a deflationary force, dragging the world into a slowdown as its own economy modernized.
Serious economists and investors pooh-poohed the idea, saying that China's economy just didn't have that kind of global impact. Just last weekend in a note to clients, Deutsche Bank's Torsten Slok said the idea was overblown.
But it seems like all of that is changing. The once taboo deflation talk is all over the World Economic Forum at Davos, and the people who are doing the talking are some of the most brilliant minds in the market.
"I think the Chinese situation with the currency is very important," said Ray Dalio, founder of $160 billion hedge fund Bridgewater Associates.
"If there is significant currency weakness for the yuan that will mean more imported deflation, and it will make things more difficult."
Linette Lopez | Business Insider