1/4
The PBoC continues to try to limit credit growth in China, in this case household debt, arguing that “there is very little room for further expansion of household debt”. It warns that the household debt ratio nearly doubled, to 62% of...
caixinglobal.com/2021-02-09/cen…
The PBoC continues to try to limit credit growth in China, in this case household debt, arguing that “there is very little room for further expansion of household debt”. It warns that the household debt ratio nearly doubled, to 62% of...
caixinglobal.com/2021-02-09/cen…
2/4
GDP, or RMB 63 trillion, between the end of 2011 and the end of 2020.
The problem is that household debt is just one locus of debt-creation needed to keep GDP growth rates high enough to satisfy political needs. If the PBoC were to restrain growth in household debt, then...
GDP, or RMB 63 trillion, between the end of 2011 and the end of 2020.
The problem is that household debt is just one locus of debt-creation needed to keep GDP growth rates high enough to satisfy political needs. If the PBoC were to restrain growth in household debt, then...
3/4
either there must be a countervailing increase in corporate and government debt, or Beijing must accept lower GDP growth rates.
This is the problem with a "technocratic" approach that identifies individual problems and seeks to address them independently of their...
either there must be a countervailing increase in corporate and government debt, or Beijing must accept lower GDP growth rates.
This is the problem with a "technocratic" approach that identifies individual problems and seeks to address them independently of their...
4/4
systemic context. While high levels of household debt create their own specific afflictions, China's problem isn't household debt, but rather debt itself, and a rapid rise household debt is simply one of the ways in which the system can manifest this underlying problem.
systemic context. While high levels of household debt create their own specific afflictions, China's problem isn't household debt, but rather debt itself, and a rapid rise household debt is simply one of the ways in which the system can manifest this underlying problem.
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