Why Chinese stimulus isn’t going to work

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China is furiously pulling the macro levers but all the wrong ones. It is certainly going to recover as lockdowns ease but not very powerfully and another shock is just starting.

Here’s a sample of what it is doing monetarily:

The People’s Bank of China (PBOC) on Monday held a meeting with 24 major financial institutions, calling for stronger support for the real economy to tackle growing downward pressure, according to a statement released by the central bank on Tuesday.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.