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When Chinese firms cannot get financing for manufacturing at all or cheap enough, because Chinese banks are hemorrhaging money from real estate, it will create
by manquer 4y ago
When Chinese firms cannot get financing for manufacturing at all or cheap enough, because Chinese banks are hemorrhaging money from real estate, it will create problems for everyone.
- jollybean 4y agoThe difference is, CCP controls the central bank and can print money for that purpose.
- manquer 4y agoCCP and the People's bank of China are not setting monetary policy in a vacuum, the Chinese currency operates within a managed floating exchange and has been internationalizing for last decade, that constraints the actions PBC can take without crashing the currency or the systems they have been building up to make CNY the(a) international reserve currency.
- jollybean 4y agoYes, true, but they have sufficient capital controls and foreign reserves they can almost do what they want.