China Deflation

(Nov 23) Peter considers the current economic situation in China and how it compares with events in Japan in the 1980s and 1990s.
  • As Japan successfully reflates, China teeters on the edge of deflation
  • Deflation can be as socially destructive as inflation
  • Wealth inequality in China has risen 50% over the last 20 years
  • Chinese stocks have already “debubbled”
  • But radical stimulus is needed to negate the effects of asset deflation