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Inflation was kept in check with consistent Chinese growth over the last +-50 years. Destruction of debt in Zimbabwe was not deflationary at all? I appreciate t
by peter_retief 5y ago
Inflation was kept in check with consistent Chinese growth over the last +-50 years.
Destruction of debt in Zimbabwe was not deflationary at all?
I appreciate the debate but disagree with what you say.
- toss1 5y agoHow does China keeping inflation in check for the last 25 years (a quick look at a historical chart showed 25%/yr inflation around 1990) with consistent growth say anything about the topic other than that the supply of money in China roughly tracked the growth? Keeping money supply fixed would be highly deflationary with fast growth. I don't know how much debt vs assets were destroyed in Zimbabwe, but it seems that most of the inflation was due to the govt printing insane quantities of money to finance it's involvement in wars in neighboring countries -- when they are printing and distributing individual notes in denominations of 100 trillion Zimbabwe dollars, when that currency started above par with the USD, it doesn't seem like debt has much to do with it; do you have some details I'm missing?