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Why do you expect China’s deflation to be contagious and spread to the West? Or is there some underlying cause that both share, and it’s just that China is show
by kinghajj 2y ago
Why do you expect China’s deflation to be contagious and spread to the West? Or is there some underlying cause that both share, and it’s just that China is showing the symptoms first?
- jarsin 2y agoThey are the worlds largest manufacturer and exporter. As their prices spiral lower and lower the goods they sell abroad do the same. Trumps tariffs will just speed this up as demand in china drops even further and they dump goods on europe for firesale prices.
- JumpCrisscross 2y ago> the worlds largest manufacturer and exporter. As their prices spiral lower and lower the goods they sell abroad do the same Eh, the deflation transmission channel for manufactured goods isn’t well established. If China had a floating currency and were a financial power, yes. But I’m sceptical cheaper consumer and intermediate goods will prompt deflation, particularly given the West is still battling inflation.