‘Decisive’ action needed to deflate China’s credit boom – IMF paper
Lack of reliance on foreign financing, low government debt, and state control help to mitigate effects of credit ?
The Chinese authorities will need to implement “decisive” policy in order to “deflate” the country’s credit boom safely, according to a recent paper published by the International Monetary Fund.
In their paper, Credit booms – is China different?, Sally Chen and Joong Shik Kang examine whether China’s economy is better equipped to deal with strong credit growth in comparison to some of its international peers.
On paper, the authors say China’s credit growth is on a “dangerous trajectory”. Over
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