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29 sats \ 4 replies \ @Satosora 13 Aug \ parent \ on: China’s Economic Landscape: Deflationary Pressures Persist econ
If it is a free fall, the market can readjust by itself.
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20 sats \ 3 replies \ @Undisciplined 13 Aug
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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25 sats \ 2 replies \ @Satosora 13 Aug
Is china so heavily controlled that it wouldnt be able to correct itself?
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20 sats \ 1 reply \ @Undisciplined 13 Aug
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.
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36 sats \ 0 replies \ @Satosora 13 Aug
That is true, they dont follow rules. Or they just blatantly disregard them. I wonder how much of their GDP is actually controlled?
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