Can China escape deflation?
Three false dogmas are inhibiting the authorities’ response
FOR THE past two years, policymakers in most of the world’s biggest economies have faced an excruciating stagflationary dilemma. They have wrestled simultaneously with high inflation, which demands steep interest rates, and fears of a recession, which would normally call for policy easing.
This article appeared in the Leaders section of the print edition under the headline “Strait-forward”
From the August 12th 2023 edition
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