Rather than speculating on the possible benefits of Chinese deflation for other economies, the focus should be on threats to the global economy and markets, plus how Beijing intends to revive growth while maintaining financial stability. Source link ...
China’s consumer price index falling for the first time since 2021 has raised fears of deflation, but a closer look at the data paints a different picture. Weak home sales and large developers’ ailing finances are weighing on the property sector as policymakers try to...
Using budget cuts to engineer a recession and tame inflation would adversely affect the middle class. There are ways, however, for policymakers to empower the middle class and disempower bankers. Source link ...
Housing prices are rising in several countries, even those with high levels of household debt and large proportions of floating rate mortgages. However, the persistence of acute vulnerabilities means global property markets will continue to emit mixed signals and perception depends on one’s stake. Source link...
The split between the reality on the ground and the way in which it is perceived by investors and market analysts seems to be growing ever wider. The IMF and others are warning about the continuing risk of a hard landing, yet investors are still...
After decades of easy money, the tightening journey will not be straightforward – or rushed. Rising bond yields and yen implications aside, the biggest challenge is in unwinding the massive balance sheet. Source link ...
The ferocity of the rally in financial markets, despite persistent vulnerabilities and global economic risks, has been striking. While there are plausible reasons for the optimism, high inflation in key economies and the possibility of a sharp downturn pose significant risks. Source link ...
Currency devaluation is a common temptation for major trading nations such as China despite the risk of starting currency wars. A recent report argues devaluing the yuan could bring major benefits and spur China and others to experiment further. Source link ...
While country comparisons are often inapt, the intractable problems in China and the UK, and investors’ fearful response, merit scrutiny. The response to these problems in both countries has been found wanting, and policymakers have hard work ahead to restore confidence. Source link ...
There is a shared view among investors across Asia that developed economies face moderate recession risks after a year of monetary tightening. Inflation is falling in Australia but a mortgage crisis looms, while China’s recovery is weighed down by poor consumer confidence and property market...