Tag Archives: China

For the three months leading into August, the Chinese government had kept the yuan-dollar exchange rate fixed in a tight range around 6.115 yuan to the dollar. Yet the yuan’s spot price consistently traded about 1.4 percent weaker than the fix. Investors, in other words, sensed a devaluation coming. In mid-August, Chinese officials proved them right by intervening in currency markets for three days in a row, prompting a 3 percent drop in the value of the yuan.   An 8 percent decline in...

Both Chinese PMI and the producer price index (PPI) are in deflation since 2012. This opens a lot of questions about the sustainability of Chinese economic growth, but also about the certain economic theories that consider deflation as a precursor of depression, as it did in the early 1930s. China’s speed of economic growth simply slows, recently to 7%, according to China statistics “China’s Economy Showed Moderate but Steady Growth“. Notice For the second year producer prices remain...