Andy Xie, renowned Chinese economist, considers that fundamental reforms are needed to curb deflation in China. Cutting interesting rates, for example, is not sufficient. The People’s Bank of China has just cut interest rates again. It may support the stock market for a few days, but it won’t reverse the deflationary trend in the economy. It […]
Tag Archives: interest rates
Joe Zhang wrote in his recent article in Financial Times that rising the interest rates will help cure China’s credit addiction… The rapid growth of bank loans after the early 1980s, coupled with lax credit standards, resulted in non-performing loans that accounted for 30-40 per cent of loan books by the late 1990s. To prevent […]
Chinese Economist Andy Xie shared for CaixinOnline his insights on the consequences of normalization of U.S. interest rates. “As the U.S. continues to normalize interest rates, emerging economies become vulnerable. Brazil and India are at the eye of the storm, but China with its huge property bubble should be wary.” Global financial markets are adjusting again […]
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