Taiwan’s amazing economic achievements are yielding alarming strains

IT IS A wild economic success, but is racked by eye-popping imbalances. It is one of the richest countries in the world, with an output per person higher than Australia, Germany or Japan after adjusting for the cost of living, but has the world’s most undervalued currency, according to The Economist’s Big Mac index. It is on a roll, but risks a messy correction. Economic management does not usually involve many Shakespearean dilemmas, but Taiwan’s quandary is genuinely wrenching: the CBC, its central bank, is naturally reluctant to abandon the policies that have made the country so wealthy, yet clinging to them is clearly unsustainable.