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A bit more thoughts on this from one of our recent reports:
"There have been five deflationary episodes in Chinese economy since the early 1990s, with each one of them being reversed by a major policy pivot that unleashes tremendous demand.
"There have been five deflationary episodes in Chinese economy since the early 1990s, with each one of them being reversed by a major policy pivot that unleashes tremendous demand.
https://twitter.com/ShanghaiMacro/status/1681602851003592704
The deflation caused by the Asian Financial Crisis was reversed by the 1998 reforms that comprehensively liberalized the country’s property market.
The 2002 brief deflation caused by the US recession ended with China entering the WTO and accessing the global market.
The 2002 brief deflation caused by the US recession ended with China entering the WTO and accessing the global market.
The 2009 deflation was decisively fought against by Beijing with the famous “four-trillion stimulus” and the creation of LGFVs.
The Chinese economy grew out of the 2015 deflation thanks to the shantytown renovation programs and aggressive household borrowing.
The Chinese economy grew out of the 2015 deflation thanks to the shantytown renovation programs and aggressive household borrowing.
The 2020 pandemic-induced deflation was literally saved by the US unprecedented fiscal stimulus and another property market boom domestically."
With both domestic and external demand falling off a cliff this time, what will we have？
With both domestic and external demand falling off a cliff this time, what will we have？
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