Saturday , October 16 2021
Home / Bruegel Think Thank / What Evergrande signals about China’s economic future

What Evergrande signals about China’s economic future

Summary:
Monetary arithmetic and inflation risk Between 2007 and 2020, the balance sheets of the European Central Bank, the Bank of Japan, and the Fed have all increased about sevenfold. But inflation stayed low throughout the 2010s. This was possible due to decreasing money velocity and the money multiplier. However, a continuation of asset purchasing programs by central banks involves the risk of higher inflation and fiscal dominance. By: Marek Dabrowski Topic: European Macroeconomics & Governance Date: September 28, 2021

Topics:
Alicia García-Herrero considers the following as important: , , ,

This could be interesting, too:

T. W. writes Global Economic Resilience: Building Forward Better

The Sound of Economics writes Will ‘common prosperity’ address China’s inequality?

B. T. writes Learning to love the technocrats again: Why the world needs expertise now more than ever

Alicia García-Herrero and Simone Tagliapietra writes Xi’s pledge on financing coal plants overseas misses point

Monetary arithmetic and inflation risk

Between 2007 and 2020, the balance sheets of the European Central Bank, the Bank of Japan, and the Fed have all increased about sevenfold. But inflation stayed low throughout the 2010s. This was possible due to decreasing money velocity and the money multiplier. However, a continuation of asset purchasing programs by central banks involves the risk of higher inflation and fiscal dominance.

By: Marek Dabrowski Topic: European Macroeconomics & Governance Date: September 28, 2021

Alicia García-Herrero
Alicia Garcia Herrero is a Senior Fellow at Bruegel and a non-resident research fellow at Real Instituto El Cano. She is also Chief Economist for Asia Pacific at NATIXIS. Alicia Garcia Herrero is currently adjunct professor at City University of Hong Kong and Hong Kong University of Science and Technology (HKUST) and visiting faculty at China-Europe International Business School (CEIBS).

Leave a Reply

Your email address will not be published. Required fields are marked *