30 sats \ 6 replies \ @Satosora 13 Aug \ on: China’s Economic Landscape: Deflationary Pressures Persist econ
They either need to start aggressively changing their policy or let it free fall.
I'm usually an advocate for free fall.
However, when you have a command economy, there's no particular reason to think you'll have a sounder footing afterward.
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I know, but that's only if there are sufficiently undistorted market mechanisms. In a heavily controlled economy, I'm not sure the readjustment necessarily gets you to a healthier place. Maybe it does, but I'm not sure.
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I really don't know. The Chinese people ignore a lot of the official rules, which means there are many more market dynamics than you might think.
Some of the really important markets, though, are heavily regulated. It's hard to unwind badly misallocated capital, when the financial and real estate sectors are state controlled. It also doesn't help that internal migration is tightly regulated.