Finance in the 21st Century: Is China Facing a Deflationary Trap?
==========
China's economy faced a roadblock post-COVID-19 pandemic; household savings increased, businesses reduced investments; concerns arise over a self-reinforcing cycle of declining spending and prices; consumer price index near zero for 16 months, producer price index negative for 24 months; Japan's three-decade deflationary trap serves as a cautionary tale; China's GDP fell from 76% of US level in 2021-23 to 67%, GDP per capita at 15% of US level; central banks should manage money like equity issuance; People's Bank of China (PBOC) lowered key policy rate from 1.7% to 1.5%, encouraging lower mortgage rates; stimulus package includes CN¥1 trillion liquidity, CN¥500 billion swap facility, and CN¥300 billion in loans; A-share market index rose over 20% post-stimulus; priorities include increasing fiscal spending, supporting the private sector, and job creation for vulnerable groups; experts Patrick Bolton and Haizhou Huang advocate for further measures to escape deflation.
#China #Deflation #Economy #Stimulus #Pboc #Gdp #MonetaryPolicy #Investment #PrivateSector #JobCreation
https://theedgemalaysia.com/node/731854
The Edge Malaysia /
npub15q…t0mcv
2024-11-02 05:52:51
Author Public Key
npub15q3n6g46fstp0h7wemjzwkh9jy6akndzdzk2sz8q0hwgvz6sfe3srt0mcvPublished at
2024-11-02 05:52:51Event JSON
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"content": "Finance in the 21st Century: Is China Facing a Deflationary Trap?\n==========\n\nChina's economy faced a roadblock post-COVID-19 pandemic; household savings increased, businesses reduced investments; concerns arise over a self-reinforcing cycle of declining spending and prices; consumer price index near zero for 16 months, producer price index negative for 24 months; Japan's three-decade deflationary trap serves as a cautionary tale; China's GDP fell from 76% of US level in 2021-23 to 67%, GDP per capita at 15% of US level; central banks should manage money like equity issuance; People's Bank of China (PBOC) lowered key policy rate from 1.7% to 1.5%, encouraging lower mortgage rates; stimulus package includes CN¥1 trillion liquidity, CN¥500 billion swap facility, and CN¥300 billion in loans; A-share market index rose over 20% post-stimulus; priorities include increasing fiscal spending, supporting the private sector, and job creation for vulnerable groups; experts Patrick Bolton and Haizhou Huang advocate for further measures to escape deflation.\n\n#China #Deflation #Economy #Stimulus #Pboc #Gdp #MonetaryPolicy #Investment #PrivateSector #JobCreation\n\nhttps://theedgemalaysia.com/node/731854",
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