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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

China News

Posted by WARREN MOSLER on December 16th, 2009

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China Won’t ‘Explicitly’ Exit Stimulus Next Year
More residents upset over prices: PBOC survey

People don’t like inflation.

China grants zero-tariff to 90% of ASEAN imports

China trying to reduce costs to fight inflation, rather than support domestic jobs.

Must be a serious inflation problem?


3 Responses to “China News”

  1. Curious Says:

    Tariffs on all imports increase prices, not just tariffs on goods from ASEAN. To fight inflation by reducing tariffs on only ASEAN goods doesn’t make sense, does it?


    winterspeak Reply:

    Depends on % imports from ASEAN vs non-ASEAN sources. If ASEAN is larger enough % of imports, this could be material


  2. Jim Baird Says:

    Just in case you thought Chinese officials had any more clue than American ones:

    So the current account deficit is decreasing, which reduces the foreign supply of dollars, but that will inevitably lead to a lower dollar?


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