Pushing on a string in China
CHINA ADVISORY
- Report
06 Mar 2020
by Andrew Collier
Will China flood the economy with capital to engineer a rapid rebound from the virus? This seems to be the assumption among investors on and offshore about the Chinese markets. I remain skeptical that a big stimulus will be effective due to the increasing inefficiency of stimulus measures in the Chinese economy for structural reasons. This is the “pushing on a string” theory, basically a stimulus with little economic growth.
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