Most of the Chinese economic indicators showed a slight reacceleration in August as industrial output and retail sales strengthened on a y/y basis. Monetary indicators like money supply growth, lending growth and inflation were also somewhat stronger than expected, suggesting that a slightly easier monetary stance could be supporting growth, Roubini Global Economics reports.
It should be noted that at the start of September China took some measures to slow growth. This, it is unclear at this point how much China is adding to global liquidity. With most other major countries in a slowed money growth mode, China has pretty much been the only source of money inflationary growth. A Chinese money growth slowdown is the final peg that results in a complete shutdown of inflationary liquidity on a global level.
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