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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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HIGHLIGHTS

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?


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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?

    Reply

    winterspeak Reply:

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

    Reply

  2. Jim Baird Says:

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

    http://www.shanghaidaily.com/article/print.asp?id=423054

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

    Reply

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