1/4
According to this article, "some economists have warned of rising risks of deflation unless Beijing maintains a sufficiently loose monetary policy to boost demand."
It seems to be an article of faith among economists that loose monetary policy...
scmp.com/economy/china-…
According to this article, "some economists have warned of rising risks of deflation unless Beijing maintains a sufficiently loose monetary policy to boost demand."
It seems to be an article of faith among economists that loose monetary policy...
scmp.com/economy/china-…
is always inflationary, even though many years of rapid monetary expansion in China (and earlier, in Japan) never seemed to set off inflation – except when an agricultural crisis caused food production to collapse.
3/4
In fact I'd argue that loose monetary policy causes inflation only if it causes demand to rise faster than supply. When monetary expansion, however, is fed through credit expansion mainly into the production side of the economy, it seems to me that loose monetary...
In fact I'd argue that loose monetary policy causes inflation only if it causes demand to rise faster than supply. When monetary expansion, however, is fed through credit expansion mainly into the production side of the economy, it seems to me that loose monetary...
4/4
policy would not necessarily lead to inflation, but could instead lead to rising trade surpluses and to deflation abroad.
policy would not necessarily lead to inflation, but could instead lead to rising trade surpluses and to deflation abroad.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
