china monetary policy
In one year, China has used up $ 676 billion of its reserves, which had reached a total of $4 trillion. It could let the remimbi fall and restore monetary autonomy in order to lower rates and boost an economy which is in recession. But this only serves to worsen the volume of debt in dollars, which of course erodes the status it seeks for its currency. The only solution: EU, US help for China.
By Alicia García-Herrero at Bruegel | Sitting on a pile of debt, China’s only way out is to deleverage: more pain now for sustainable growth later. [Figure: China’s augmented fiscal deficit as % of GDP.]
By Wang Liwei at Caixin | Aders Borg from the World Economic Forum discusses structural changes and the global financial framework’s future.
BEIJING | July 10, 2015 | By Alberto Lebrón | Can you imagine a country capable of losing, in just three weeks, nearly five times what Greece owes the Troika? Chinese stock markets have lost ten billion yuan. In euros, that is almost one and a half billion, more than Spain’s entire GDP.
BEIJING | June 2, 2015 | By Xu Gao via Caixin | Unless obstacles blocking the flow of capital to the real economy are cleared, the financial market will continue to be trapped.
Iris Mir | China continues to struggle to avoid being swallowed by the challenges that stifle its stagnant economy while developing a new monetary policy. The IMF applauded the steps taken so far and no longer considers the RMB an undervalued currency. However China remains too cautious in its monetary reforms. Risking the country’s ambitions of further internationalize the RMB and the joining of IMF’s cherished Special Drawing Rights Basket.
BEIJING | By Xiu Gao via Caixin | The annual Central Economic Work Conference report sketches a framework for looser monetary policies and adjustments to slower economic growth in China.