China’s deeply entrenched countercyclical policy mindset is misaligned with its structural challenges: mounting deflationary risks, exacerbated by the lethal interplay between a rapidly aging population and serious productivity problems. Read More Here
China’s real-estate sector is buckling under the weight of falling prices, a huge and growing inventory of unsold units, and highly indebted developers. Add to that slowing GDP growth and falling inflation, and a prolonged period of stagnation and deflation, triggered by a property-bubble collapse, seems increasingly likely. Read More Here
China is still on ‘borderline’ of deflation but once the declining price trend takes hold history shows it’s difficult to contain and reverse. Read More Here
The story of Japan these last 20 years, from the government to banks to companies, has involved keeping consumer prices steady. Deflation has acted like a stealth tax cut for households and restored some sobriety to costs. Read Here – Bloomberg
looking beyond borders 