Last week, People’s Bank of China (PBoC) Governor Zhou reaffirmed his concerns about the stability of the financial system in an article. Susan Joho, economist at Julius Baer points that he surprisingly spoke boldly of the risks of a Chinese Minsky moment.
china banking crisis
BARCLAYS | In chess, the concept of zugzwang refers to a point in the game where any change in the status quo weakens a player’s position. The ideal choice would be to not make a move, except that “pass” is not an option. This concept effectively explains the choices that confront China’s policy makers.