In an economy as tightly controlled as China, how much does deflation even matter?
Also I wonder how everywhere else having inflation will interact with this. Is China just getting affected because the rest of the world can’t afford basic necessities anymore? The article kinda touches on reduced demand from countries with inflation abroad causing this, but also doesn’t really explain anything other than going “lower number is uh bad”
it matters to the people whose lives it impacts, and they’re not going to be happy about the impacts… of course deflation can occur… they will try to use artificial means to control it, but they will still have to choose how to pay for things… they can’t produce things for free just because the economy is controlled… it’s a dire circumstance for them as their property market collapses, and unemployment is at insane levels… deflation is a nightmare in that scenario, because it is the further contraction of an already faltering market…
In an economy as tightly controlled as China, how much does deflation even matter?
Also I wonder how everywhere else having inflation will interact with this. Is China just getting affected because the rest of the world can’t afford basic necessities anymore? The article kinda touches on reduced demand from countries with inflation abroad causing this, but also doesn’t really explain anything other than going “lower number is uh bad”
China has built out enough infrastructure where it really needs consumer demand to take over as a major economic engine.
Nah, that is liberalism. https://thenextrecession.wordpress.com/2023/08/02/china-consumption-or-investment/
it matters to the people whose lives it impacts, and they’re not going to be happy about the impacts… of course deflation can occur… they will try to use artificial means to control it, but they will still have to choose how to pay for things… they can’t produce things for free just because the economy is controlled… it’s a dire circumstance for them as their property market collapses, and unemployment is at insane levels… deflation is a nightmare in that scenario, because it is the further contraction of an already faltering market…